You can divide the reasons for selling a business into two main categories. The first is a planned sale and the second is an unplanned sale. An owner who knows that selling should be a planned event makes the planned sale. The unplanned sale is motivated by a specific event such as divorce, business crises, or health. In between these two major reasons are some unpredictable ones.
A seller may not even be thinking of selling when an individual, group or another company approaches him or her and an offer is made. The business owner may die and the heirs have no interest in operating the business. A company may bring in new management who decides to sell the entire business.
An owner may be forced to sell when a major competitor enters the market. The competition may not be just another company; it may be a competitive advantage. New technology by a competitor may outdate the way a company produces its products. New pressures can be put on a company when two competitors merge. Big box stores can promote themselves on a larger scale than a single business.
These issues may not push a business owner to consider selling, however, they are certainly causes for consideration. Most sellers fail to create an exit strategy until they are forced to do so. Business owners should go out when they’re on top of their game. Click here to review EBIT Associates services related to Selling A Business.