Why would a business owner sell a good business?
Most business owners sell their business due to “human factors”. These include:
- Health Issues
- Partnership Issues
- Expansion Funding
- Just Want a Change
It is far less common for a business to be sold because of poor financial performance, and it is even rarer to find a business broker selling such a business – because those businesses are practically impossible to sell.
A business owner looking to retire may sell a business to a family member or look for an outside party such as an individual or another company to take over the company. Other business owners are possibly looking to relocate out of the area and it is not feasible for them to manage the business from a distance. Health issues can be another reason that a business owner will sell a business. They may not be physically able to handle the activities needed to operate the business. Divorce may also lead to an owner selling a business. The business may need to be sold so that the proceeds are split between the two individuals. Some owners become burn out on doing the same thing over a number of years. Burn out is the number one reason owners sell business operations. The owner may be overworked, stressed, take business problems home with them at night, frustrated with employee issues, or a number of other reasons. The owner realizes that they need to make a change in their life. This change is also usually good for the company as well.
The sale of the business can be an emotional roller coaster. 90% of owners are first time business sellers, so the business sales process is something new to them in which they don’t have experience. Business sellers often have mistaken the process of selling a business with a real estate transaction. There are very few similarities of the sale of a business and a sale of residential or commercial real estate. We provide you with the assistance and guidance needed to guide sellers or buyers through the process.
In addition, the ten percent of buyers that sell multiple businesses over their lifetime see the value of specialist business exit plans in the process and use them in their future business transactions. EurekaMax are focused business growth consultants, we will assist you, yet still give you TOTAL CONTROL over the sale of your business. After all, you know your business better than someone else, so you must retain total control over the sale.
A major factor is retaining confidentially while your business is being sold. We will screen all interested buyers for you and get them to sign legally binding Non-Disclosure Areements before they get any information. Selling your business requires the skills needed to understand and convey complexities in your financial statements, relay to buyers the value in existing employees, customers, and suppliers. We will assist you with all of these tasks, whilst you still have full control over negotiations which is how it should be. As required, we will also provide you with our specialized marketing advice and advise with creative deal structuring to enable you to negotiate the best deal for yourself.
Even if you’re not sure whether now is the right time to sell, it is worth finding out just how much your business is really worth. If it doesn’t match your minimum expectations, you can then start preparing an exit plan (which should also include a business growth action plan). That way, when it does come time to sell, you should be able to achieve maximum value in the shortest possible time, and with the least amount of hassles (because they’ll all be handled by us on your behalf).
Call Martin Dabb ph; 0458 290 100 (Perth) or Email Me to discuss any issues or questions related to selling your business or reaching your maximising your business value.