3 Reasons Why A Vendor May Sell Their Business
The decision to sell a business is never an easy one to take. Usually, several factors influence why someone would choose to sell. These factors can impact the transition period and the efficiency of the transfer, and so it is critical for potential buyers to understand the motivation of anyone selling a business.
We’ve outlined some of the top-selling reasons why a vendor may want to sell. Take a look.
1 – Health Problems
While many people keep busy and work well into their retirement years, and immensely enjoy running their business, health problems can prevent these individuals from performing at their best. Depending on the severity of the health problems, it may impact their ability to carry out daily tasks. While this is certainly frustrating, it could also be an excellent opportunity for the business owner to slow down.
The business owner may choose to sell up so that they can recuperate and have time to enjoy a range of activities that they may not have had time for when they ran their business. Health problems may also serve as a wakeup call that encourages people to make life changes, such as handing the business to someone else or generally slowing down. The vendor’s family also play a vital role here, as well. They could insist that they want to spend more time with the person in light of their recent health problems.
2 – Retirement
With profitable businesses, it’s not unusual to see it passed from generation to generation down a family line. But in some cases, the family members don’t have the skills or interest needed to keep the business running and most importantly profitable. When this happens, some vendors decide it’s better to retire and sell as quickly as possible, instead of trying to find someone else in the family to take over.
Other vendors don’t have any family or interested party to pass their business on to, so they sell. These sales can come with very short transitional periods for the new owner if the retiree wants to get out quickly. However, some vendors like to work with the person buying the business to ensure it will go into capable hands and to assist with the long term ongoing success of the business. Your JBB broker can help outline the handover options available for the specific business in question.
3 – Needing a Change
Many vendors simply want to take time out and focus their energy on something else. Maybe life circumstances have changed, and the vendor has gone through a divorce or the death of a spouse, or they’re simply now looking to take on other projects. Burnout is another reason many vendors want a change. They do the same things every day, and they’ve tried working in other areas of the company for a change, but to no avail.
If so, selling the business could give them the funding they need while also freeing up their time. If the vendor is still too young to retire, the money they make from the business sale will give them a little time to decide what their next move is or what they’d like to pursue. Another option would be to use the money to fund another business in an entirely new industry.
No matter if you want to buy or sell a business, you need an experienced business broker on your side to guide you through the process. Our brokers are the team to call. Contact us today to get started – our experienced brokers are just a click or call away on firstname.lastname@example.org or 0409 965 540.