What Drives Business Owners to Sell... And Business Buyers to Buy

The buyer of your business will buy for his or her reasons, not yours.  If you decide to sell because your business is not going well and you simply want to get rid of it... do you think a buyer will be convinced?  Your attitude and what you say can drastically devalue your business and its true worth.
 
Whatever your situation, your reason for selling must be convincing and your explanations consistent.
 
It's only natural that you will want to get the highest price you possibly can.  Although how much you get is important, it won't necessarily drive your ultimate decision to sell.
 
For most business owners, the decision to sell is usually a combination of personal and financial reasons.  Is this your situation too?  The chances are you will have a personal attachment to your business.   It’s been part of your life for some time now.  Only you are capable of making the ultimate decision to sell.
 
The same applies to buyers.   It won't just be a financial decision, it will also be about lifestyle, personal independence, freedom to express themselves, maybe an escape from the corporate "rat race", or the satisfaction of being in charge of their own little empire.
 
The price they pay is important, as it will need to stack-up financially, if they are to convince someone to lend them money.  However, financial considerations alone will not drive their decision to purchase.
 
Buying the business will change their lives and they know it.  Only the buyer is capable of making the decision to buy.
 
Remember at the end of the day, both you and your potential buyer will have to balance the imagined personal gains against what could be uncertain financial prospects.  Here's the crunch... because you as a seller are offering a business opportunity and NOT a business guarantee.


Article by Noel Pebbles "Sell Your Business the Easy Way"

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.