8 common reasons why owners sell their business

Most of us think that investing is mainly about stocks and crypto.

Want to learn unconventional wealth creation strategy?

• Invest in profitable small medium businesses (SMB)

• Give the neglected cash-flowing assets a new life

There are huge opportunities for investing in profitable small medium business. Here's why:

• More than 60% SMB owners are 40+

• 10,000+ will be retiring everyday over the next 20 years

• Only ~20% of kids want to take over family business

You may ask:

“Why would anyone want to sell their business?"

Here are 8 most common reasons why business owner sell their companies:

1. Retirement

   • Imagine an owner is ready to retire, but there is no willing or suitable successor

   • Selling the business is often the best option

   • Exiting a business due to retirement is allows ample time for full transition

2. Poor Health

   • The owner's hard work and dedication are key to business success

   • When an owner is unable to run the operations, the business suffers

   • Health concerns leave the owner with no other option but to sell

3. Desire for change

   • Owners can grow tired of running a business and wish to pursue something new

   • Managing a business requires significant time and effort

   • Useful for owner to find a buyer and take a permanent break

4. Pursuing more profitable ventures

   • Owner might come across a more profitable new opportunity

   • Cannot devote enough energy to run both new and current business

   • Best option is to have a buyer take over current business

5. Reaching the limits

   • Business owners can reach a stage of stagnation.

   • They feel that they have maximized the potential growth of the company

   • The business need a new steward or merge with others to continue its growth

6. Declining profitability

   • Business owners may decide to sell the company if their company is no longer profitable

   • This helps them avoid further losses

   • Potential buyers must carry out appropriate due diligence

7. Cash-in on business value

   • If a business is successful, it will attract high valuations

   • Owners may want to monetize their investment by selling the business

   • This could fund future ventures or provide retirement money

8. Industry concerns

• Owners may consider selling their business due to changes in the industry and market

• For example: new legislation, regional economic downturns, or political factors

When business owners are ready to sell, a popular strategy is to find a suitable buyer to take over.

This will be an opportunity for investors to come in and carry the brand to the next level.

Read more:

• How to value a business

• Work-life balance for business owners

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