Why Sell Your Company?

Selling one's business can be a traumatic and emotional event. In fact, "seller's remorse" is one of the major reasons that deals don't close. The business may have been in the family for generations. The owner may have built it from scratch or bought it and made it very successful. There are times when selling is the best course to take. Here are a few of them:

1.  Burnout – This is a major reason, according to industry experts, why owners consider selling their business. The long hours and 7-day workweeks can take their toll. In other cases, the business may just become boring - the challenge gone. Losing interest in one's business usually indicates that it is time to sell.

      2.  No one to take over – adult children can be disenchanted with the family business by the time it's their turn to take over. Family members often wish to move on to their own lives and careers.

      3.  Personal reasons – Events such as illness, divorce, and partnership issues often force the sale of a company. Unfortunately, a forced sale does not bring maximum value. Proper planning and documentation can preclude an emergency sale.

      4.  Cashing-out – Many company owners have much of their personal net worth invested in their business. This can present a lack of liquidity. Other than borrowing against the assets of the business, an owner's only option is to sell it. They have spent years building, and now it's time to cash in.

      5.  Outside pressure – Successful businesses create competition. It may be building to the point where it is easier to join it, than to fight it. A business may be standing still, while larger companies are moving in.

      6.  An offer from "out of the blue" – The business may not even be on the market, but someone or some other company may see an opportunity. An owner answers the telephone and the voice on the other end says, "We would like to buy your company."

If you are contemplating the sale of your business, or small business ownership, feel free to give the Sunbelt Nanaimo office a call at 1-877-289-0969 or visit our website at www.bcbusinessbroker.ca or www.sunbeltnetwork.com/vancouverisland. We have serious buyers looking to buy a business on Vancouver Island.

Secrets for Successful Business Sales

Are you looking to buy a business?  Or are you looking to sell a business?  A recent survey of business broker professionals reported the following response to the question: What was the main obstacle that caused pending sales from closing?

1.  Misunderstandings force many deals to fall apart. The buyer and seller should be in agreement from the beginning and understand the terms of the sale.

2.  Patience. Putting a deal together and closing it takes time. It’s crucial that the buyer and seller advise their lawyers of the timelines and that unless the deal is illegal or unethical, they want it to work.

3.  No surprises. Everything should be revealed from the start. No business is perfect and buyers are more understanding if company weaknesses are disclosed from the get go.

4.  If buyer and seller should both feel like they got a good deal, closing is a mere formality. That’s the sign of a win-win transaction.

5.  The real secret is one word – listen. Everyone involved in the deal must listen. No one can win on every point. By listening, both sides will understand what is really important to the other.

Business Brokerage is all about relationships and connections. If you are interested in exploring business opportunities or are contemplating the sale of your business, contact the Sunbelt Nanaimo office at 1-877-289-0969 or visit us at www.bcbusinessbroker.ca or www.sunbeltnetwork.com/vancouverisland.