There is no set-in-stone right or wrong moment to sell your business. It’s up to you to decide when it’s time. But how do you actually make that decision? There are several reasons why selling your business may be the best choice for you.
1. Long term business goals reached
In additional to achieving strong ‘financials’, many businesses also pursue significant internal goals; perhaps process-alignment to become more operationally efficient, perhaps development of new products or securing new markets. The achievement of such goals is often a good time to reflect. When their particular business- transformation project was successfully completed, one of my clients took the opportunity to exit their business.
2. Additional resources needed
Sometimes good businesses with great revenue and profit reach a point where fresh perspectives, additional resources, or specific new skillsets and expertise are needed to achieve new heights. The influx of capital and talent that a new owner can bring might just be what the business needs. A purchaser that I recently assisted has been able to move an acquired business forward significantly by applying their own specific expertise and resources.
3. Business in good shape/Experienced, loyal staff
The numerous High-Value business sales that I brokered recently all typically have good ‘staff development’ structures/processes in place, with senior staff making many operational decisions. As a result, their businesses continue to flourish. Such businesses are also attractive to passive investors not necessarily wanting a hands-on role.
4. Aligning with Personal Goals
Selling your business can also be the path to achieving your long-term personal goals. Your dreams and aspirations may include retirement, travel, pursuing a different career or a change in lifestyle.
The financial gain from selling your business can be a catalyst for actualising these goals, making it a strategic move to align your professional and personal aspirations. Several of my recent clients are now enjoying their retirement after selling their high value business.
5. Pursuing New Opportunities
Entrepreneurs are known for their innovative spirits and the drive to explore new horizons. Perhaps you have a brilliant new business idea or wish to change industries. Therefore, selling your current business can provide the capital and freedom needed to turn your dream into a reality. One of my recent clients sold their multimillion-dollar business and then moved offshore to start a new venture. Selling your current venture doesn’t mean abandoning entrepreneurship. Instead, it could be a transition into a new beginning.
If any of these points resonate with you, then it might be time to start thinking about selling your business. It’s important to remember that selling your business is not merely an end; it’s the beginning of a fresh chapter where you can continue to succeed in different ways.
