Smith Holland M&A Resources
Top reasons for selling your business.
Creating a profitable business from the ground up takes vision, passion and most importantly hard work. Taking all the risks while knowing that your next paycheck is never guaranteed is a heavy burden for any company founder to carry, but the Smith Holland M&A advisors know exactly how that feels and we can guide you through the complex process to sell your business.
With any business, the first question that any serious buyer will ask will be about the reason for selling your business. Just like many sellers ask themselves, how do I sell my business for the best value without making the buyer think there is something wrong with the business?
And while often times, sellers can have more than one reason for wanting to sell a business, our mergers and acquisitions firm has experience working with clients that are dealing with all types of reasons for wanting to sell including the most common reasons below.
TIME TO RETIRE – Retirement is probably the number one reason that most sellers have for wanting to sell a business. Old age catches up to all of us eventually and at some point, most business owners realize that it’s time to pass the business on to a younger owner that can dedicate more passion and resources to growth. Wanting to retire is a completely understandable reason for wanting to sell your business and it should come as no surprise that the majority of our clients are motivated by the desire to enter into retirement after a long time running the same business.
FAMILY ISSUES – Family issues can always have an impact on a seller’s ability or desire to keep running a business, especially when family comes first for most people. Common family issues include divorce, relocating for a family member or just the need to spend more time with family in general. Whatever the reason may be, we help clients work through the process of selling a business with the utmost compassion and properly explain the situation to buyers with discretion.
MEDICAL ISSUES – All of us are subject to medical issues and dealing with a serious medical issue can often be the primary motivation for wanting to sell a business. With everything from major surgery to a death in the family, we understand how medical issues can impact daily operations and our M&A advisors can develop a custom-tailored exit strategy that is built around the specific medial issues you’re facing.
NEW BUSINESS VENTURES – For most successful business owners, it’s not uncommon to have more than 1 idea for a great business model. And while a business owner may have had great success in starting and growing their first business, it’s completely understandable to want to pursue new business ventures that you believe will be more profitable in the long-term. Alternatively, there could be another investment opportunity available in real estate, the stock market, etc. and with the bulk of your net worth tied up in your business, selling your business can be the best option for converting your equity into liquid cash that can be invested in other opportunities. Whether you’re planning on starting a new business venture, investing in real estate or investing in some other type of opportunity, the Smith Holland team has extensive experience with mergers and acquisitions and we can help you divest your business assets as you work to pursue new investment opportunities.
EXHAUSTED AND BURNT OUT - Running a business is hard work. Whether you’re tired, bored, exhausted, or just no longer interested, it’s extremely common for business owners to get burnt out with operating the same business over a long number of years. Doing the same thing everyday for 10+ years can take its toll and it’s completely reasonable for a business owner to want to try something else. Our M&A advisors can help you sell your business to the right buyer for the right price so that you can move on to the next chapter of your life while realizing maximum shareholder value for your years of hard work. A business owner that is uninterested will eventually be reflect on the P&L statements when it comes to your company’s financial performance, which ultimately negatively impacts the company’s value when it comes time to sell your business. As a result, if there’s even a hint of fatigue or the feeling like you can’t go on running the business for the long-term for whatever reason, it’s always best to start the process to sell your business sooner rather than later since the company’s value will decrease if the business operator isn’t performing at normal capacity.
PARTNER DISPUTES – While every business owner enters into a business partnership with the hopes that it will be successful for the long-term, that’s not always the case. Sometimes, partners are simply unable to agree on the core vision for the company and when this situation occurs, selling your business is often the best decision for everyone involved. A business partnership is very similar to a marriage and just as you can get a divorce from a marriage, selling your business is an easy way to get a “business divorce” from your business partner. All partners still get to capture value from what was collectively built together and can take the proceeds from the sale to go in different directions for new business venture projects. At Smith Holland, we completely understand that if a business partner dispute has escalated to the point where you can no longer work together with your business partners, selling the business must be done with compassion and discretion. We’re always mindful that things must be handled delicately to keep everything as amicable as possible and we’re happy to be the bridge that helps bring to estranged business partners temporarily together for the sole purpose of selling the business so that you can go your separate ways. Ultimately, it’s not for us to decide who is right and who is wrong in any business partner dispute. Our role is to help secure the best value for your business and make sure we get things done quickly so that all parties involved on the sell-side can part ways amicably.
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