8 common reasons why owners sell their business
Most of us think that investing is mainly about stocks and crypto.
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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:
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
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
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
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
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
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
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
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.
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