Why Do Owners Decide To Sell Their Businesses?

Have you been asking yourself, “Should I sell my business now?” If you are not sure how to identify that, consider these 5 critical factors that may be signs that you should start the selling process.


Stressed businessman with hand on forehead, capital gains tax rate

Fatigue & Stress

Running a business is much more than a full-time job. Over the years the energy required to handle day-to-day challenges can be enormous. Even with great internal management, there is only so much energy to deal with daily issues. We have been called many times because the owner’s doctor has told them to sell the business in order to reduce the stress in their lives. As owners reach retirement age, it’s normal for them to think about “what’s it all for” and begin to look at other more rewarding activities and where they’ll get the financial resources needed to pursue them.



They are just tired and ready for a change. It is common for employees to change jobs; business owners sometimes want to change the direction of their careers and switch industries. Even business owners with very profitable businesses want to do something else. We sold a well-run, profitable business for an owner that wanted to be a police officer. He will make significantly less money as a police officer, but that was his dream.


black and white dice falling, should i sell my businessRemoving Financial Risk

As people age, they take fewer risks. Most financial advisers will diversify retirement accounts into stable stocks in a variety of industries to minimize the risk to retirement income. Most business owners have a major part of their net worth tied up in their business. The value of the business could be destroyed if something happens to their key employees, the economy, government regulations change, a large customer is lost, new competition emerges or hundreds of other things happen. Savvy business owners will sell the business when the business is performing well.


Economic Uncertainty

If a business owner has been in business for more than 5 years, they know the economy runs in cycles. There is typically a recession every 5 years. It stands to reason there will be another economic slowdown in the next few years. Many owners realize the best time to sell is when the business and the economy are trending up. The next recession could be worse than the last one due to mounting government debt and the growing lack of consumer confidence.


Physical Health

Businesses are not run by machines – they are run by people. We have seen too many families no longer able to enjoy the lifestyle their loved one provided due to the business owner’s untimely exit or major disability. If you are not ready to sell your business now please prepare a contingency plan to protect your family.


So Should I Sell My Business Now?

The biggest mistake business owners make is waiting too long to sell their businesses. The best time to sell is when the owners and the businesses are both doing well.

Do not be a business owner that receive nothing for all of their hard work!

If now is the time to sell, give the business experts at Gateway Mergers & Acquisitions a call at (972) 219-6961.

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