As business advisors, we’ve seen owners sell their companies for a wide range of reasons, most of which are personal. Are you experiencing health issues? Are you burned out and just don’t want to come into work anymore? Are you ready to retire and enjoy leisure time? Have you lost your passion for this particular business? Are you ready for a new opportunity? All of these personal concerns, and hundreds of others, are valid reasons for deciding to sell your business.
Financial Reasons To Sell Your Business
When it comes to “letting go of your baby,” you might be primarily motivated by financial reasons. And rightfully so. You’ve invested in the company, taken all the risks, worked hard…it could be time to cash in on the rewards.
As business advisors, these are financial scenarios we commonly see that compel people to sell their businesses:
- need the money
- want the money
- can’t keep up with debt obligations
- can’t keep up with current or future capital demands of the business
- partner(s) or shareholder(s) want to cash in
- tax ramifications
Any or all of the reasons listed above can make it the right time to sell your business.