Prepared to Sell Your Business
Begin – with the end in mind.
Are you prepared to sell your business? Selling a business can be very traumatic and emotional. Small business owners pour their life into building the operation and it’s tough to let go. In fact, “seller’s remorse” is common and something many business owners experience. The business may have been in the family for generations. The owner may have built the operation from the start through sweat equity or made a purchase and turned operations around. Although its always a tough decision, selling can be the best course of action. Not all business transitions are well planned. Here are a few good reason to be prepared.
“The average time a business is on the market from list to sell is nine months.”
Burnout – This is a major reason for selling a business. According to industry experts it ranks as the number two reason for selling with retirement as the number one reason.
Retiring and no one to take over – Sons and daughters many times have not interest in the family business by the time it’s their turn to take over. Family members often times have their own lives and careers mapped out. It is also common for family members to not have the skills or determination it takes to operate a business. More and more business owners come to realize they and their family are better off selling the business to a third buyer and investing their proceeds.
Personal problems – Events such as illness, divorce, and partnership issues do occur and many times force the sale of a company. Maybe your spouse is urging you to move away from the cold, windy Kansas City winters. Proper planning and bookkeeping can be a great investment now for these types of situations
Cashing-out – Many company owners have most of their personal net worth invested in their business. This can present a lack of liquidity. Other than borrowing against the assets of the business, an owner’s only option is to sell it. They have spent years building, and now it’s time to cash-in.
Outside pressure – Successful businesses create competition. A great example of this is in franchising. When you see a successful franchise concept, you will find competition attempting to take market share. A business may be standing still, while larger companies are moving in.
An offer from “out of the blue” – The business may not even be on the market, but someone or some other company may see an opportunity. An owner answers the telephone and the voice on the other end says, “Hi, this is Chris Kerth with Murphy Business. I have a qualified buyer that’s interested in owning your business. Would you have an interest in selling?”
Growth beyond the owner’s capabilities – Many business owners grow their business to a level where it become too much to manage. As the business grows to a higher level, the owner may not have the ability to manage the operation.
Chris Kerth begins the sales process by offering a Free, No-Obligation Market Analysis and we only get paid when the deal closes.
Let Chris Kerth with Murphy Business sell you’re Business.