Exclusive insights for owners within the Recycling, Waste, Pallet, and related industries

Reasons To Sell Your Business

1. Business Momentum

Selling your business for its maximum enterprise value is all about momentum. This momentum or timing does not always reside with you as the business owner. While this may feel counterintuitive, the best time to sell a business is not only when your business is doing well, but when a potential buyer is looking to grow market share. Momentum is a two-way street and the economic power that you want to unleash for a maximum return is to make sure that these two elements are moving in the right direction. You will create the highest value for the sale of your business when these two forces come together. One of the best reasons to sell your business is when this economic dynamic exists.

Nearing retirement age does not mean that the momentum that you built has to come to a complete halt. If you are not ready to retire, you can still sell the business and secure your financial future and remain active in the company as a board member or consultant. This can be a rewarding experience for an original owner while providing an opportunity to transition gradually into retirement rather than jumping from full-time work to full-time retirement. In this scenario, even if there is a subsequent dip in the economy or the business declines, the original owner no longer carries the risk of losing value in the business.

Measuring this momentum to optimize enterprise value takes industry experience to unlock the potential proceeds from the sale of your business. Finding the right 3rd party business advisor that can assess the momentum of your business against national and international buyers will identify the best time to sell a company for maximize enterprise value.

2. Retirement

While owning a business can be very fulfilling, selling a business and making time for family and other interests can be very satisfying. Many business owners have dedicated their life to ensuring the success and growth of their company. These owners deserve to enjoy the fruit of their labor while still in good enough health to enjoy retirement. As we mentioned in an earlier point, maybe you’re not ready for a complete transition to full-time retirement. In that case, you can stay on as a part-time consultant, freeing yourself up to enjoy new hobbies while assisting in the business less directly. The choice is entirely up to you. No matter what you choose, though, it is essential that you work with an experienced partner to maintain business continuity, preserve your business reputation and legacy, and ensure a smooth transition.

3. Burnout

Business ownership is a heavy burden and the stress can build over time. Most owners believe that the best way to deal with this weight (and prevent burnout) is to invest more of themselves into the business in one way or another. Sometimes this looks like working extra hours; sometimes it means hiring additional support staff. Alternatively, some owners attempt to prevent burnout by stepping away temporarily and taking a vacation.

For owners who have taken steps to prevent burnout, and yet burnout persists, selling the business can offer the means and the time to spend more time doing something more fulfilling. Generally speaking, it is a good idea to sell your business before you fall prey to full burnout. Your lack of interest and motivation can negatively impact the business, which can make selling more difficult.

4. New Interest

We often meet business owners who do not describe themselves as “burned out,†but rather, they have lost interest in their business. These owners simply desire to do something different. If you find yourself feeling disinterested or detached from your business, an unfortunate but likely side effect is that your efforts to sustain and grow the business have probably decreased along with your interest and passion.

New business opportunities come up regularly, and you may find yourself much more interested in something different. This is why many business owners come to us with the desire to sell their current business and potentially buy a new business. Viking business brokers and advisors have owned many of their own businesses, and they have found that pursuing a new interest and starting a new business venture can be incredibly revitalizing. In addition, you can apply your previous skill set to just about any endeavor you choose. Even better, as an experienced business owner, you will have the added benefit of learning from your likes and dislikes from your previous business.

5. Money

Another common reason to sell your business has a more direct connection to money. An owner may be concerned about having the funds to sustain a future for the comp If business is down, unfortunately, in today’s competitive market, small businesses and startups can experience financial hardship and even bankruptcy. Selling your business will give you the extra funding you need to get back on your feet.

6. Relocation

Sometimes relocation goes along with retirement. For example, an owner may look forward to selling the business and moving to a new part of the country. On the other hand, relocation may be required for family reasons or for another professional opportunity. Keep in mind that when relocation is the reason for selling your business, it may affect the timeframe of the selling process and the type of transition period that a seller will provide to the new owner. Be sure to communicate with your business broker about any time frame constraints involved with your relocation.

7. Selling Was Always The Plan

For some, selling the business is the plan from the start. Some types of business owners are serial entrepreneurs at heart, made to move from one business to the next. This person thrives on taking a great idea and making it a reality. If you like to take things through the start-up phase, but then let someone else handle it from there, the reason to sell your business is simple: it was the plan all along. When done well, each time you sell a business, you will gain capital to invest in your next venture; string together a few of these sales, and you will hopefully continue to move forward with growing momentum and capital.

Were any of these reasons to sell a business surprising or new to you? If you are thinking through a potential exit, a good place to start is with our no-cost, confidential business valuation. We are here to help provide you with essential information to help you make the best decision at the right time for you and your company.

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