If you’re like many business owners, you might have envisioned yourself staying with the company indefinitely (or at least until the end of your working years). After all, building a successful business is a lifelong dream. How could you get tired of that?
Even if running your business is generally a joyful affair, you might eventually want to move on and consider selling your business. If you do, you’re far from alone. Here are some of the most common reasons owners sell.
Historically, retirement has been the most common reason business owners cite for selling. If you’re preparing to retire, selling your business may well be the only thing standing between you and a life of leisure.
However, your business is your legacy, so you don’t want to sell it to just anyone. Here are some common types of succession plans retiring business owners choose:
- Passing the company on to a younger family member
- Selling the company to an employee
- Offering the business for sale on the open market
Of course, even seemingly simple transactions can be a lot more complex than they appear. If you work with a qualified business broker, you’ll benefit from expert guidance while negotiating a deal that works for you and the new buyer.
Moving Out of State or Abroad
Selling your business isn’t an absolute must if you are moving to another state or another country. If you aren’t involved in day-to-day operations, you should be able to move with little issue. But if you’re an owner-operator, moving far away may make it nearly impossible to run your business.
How you handle a situation like this is up to you. If you aren’t ready to sell, hiring an experienced employee to essentially take your place is an option.
At Sunbelt Business Brokers, we see countless owners make the decision to sell and move on. Burnout is the main reason we’ve seen an increase in business listings.
If you’re considering selling your business, you may already be experiencing burnout in your own career. But it isn’t only your own burnout that can cause problems — dealing with employee burnout (and the ensuing high turnover) causes issues of its own.
Older owners, in particular, tend to get frustrated with the high turnover rates and overall quality of employees. Finding and keeping great employees can be difficult and time-consuming, so some owners would rather sell instead.
Younger owners also find high turnover frustrating, but they often take a different approach to solving the issue. These owners see employees as part of the overall business process, so they frequently create “sticky benefits” that encourage employees to stick with the company. Some high-quality sticky benefits include good health insurance and ample PTO.
Notably, many business buyers believe they can do a better job of controlling burnout than the seller. If a buyer has a solid plan of action, this might be true, but it’s certainly not a given.
Thinking About Selling Your Business?
The decision to sell your business isn’t one you should make lightly. And before you even consider creating a listing, make sure you get an accurate business valuation. If you aren’t sure where to start, check out our free business valuation calculator.
As you may have already discovered, selling your business is harder than it sounds. The good news is that you don’t have to do it alone. At Sunbelt Business Brokers, our experienced team exclusively works with owners of small and medium businesses. Let us help you find a motivated buyer and negotiate a deal structure that’s favorable to you. Get in touch today!