When it comes to selling a business, the process goes much deeper than a financial transaction and a signature on a dotted line. It’s about finding the right time, partners, professional expertise and potential acquirers – not just a quick fix to solve a problem.
An entrepreneurial venture is not just an investment in time, money and personal career, it also often creates a significant emotional attachment so it’s important that the owner is selling for the right reasons.
Some of the worst reasons to sell a business include:
Inability to cope with pressure and stress – look for help first
Reaction to current social or political climate – these things change fast
Giving up at the first or second hurdle – it won’t always be plain sailing.
The decision to sell a business should be a meticulously considered and well-planned one so to help you decide if the time is right for you, we’ve put together the most common reasons owners decide to sell up.
Unfortunately, time waits for no man and no matter how dedicated you are to a business, there comes a time when you need to hang your hat up and let somebody else take the reins. This will ensure your business stays on top of its industry and in touch with the modern marketplace.
A brand-new venture
Entrepreneurial spirit often leads to a business owner itching to start up something new once they’ve made a success of their last venture. If you’re in this position and looking to dedicate yourself to a new project, selling your existing business is definitely a viable option.
The business has become too big
As a business owner, it’s important to put pride and personal investment aside in order to accept your limits. This sometimes means acknowledging when a business had outgrown the skill set of its current management and restructuring the top-line team accordingly.
Stepping down to make way for somebody else with a stronger set of skills or more extensive experience in a particular area can sometimes be conceived as a sign of weakness by those at the top but this certainly isn’t the case.
Cashing in on capital
While there are definitely some people out there who ‘do business’ just for fun, most are in it to make a success of their venture and reap the financial rewards for themselves and future generations. Often, those looking to sell their business are simply wanting to cash in on the hard-earned capital that it will bring them.
An offer that can’t be refused
Sometimes, it’s a simple as that. An offer presents itself from a keen buyer and it’s just too strong a business opportunity to resist.
If you’re considering selling your business or are already in the process of doing so and want some advice regarding your tax obligations and finances, get in touch with one of our trained experts who will be more than happy to help.
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About The Author
We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!