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Few Reasons Why Entrepreneurs Sell Their Business

We have been bringing together a buyers and sellers of businesses since 2011 and often get asked by the buyers, why is the business for sale?

In our experience, todays’ entrepreneurs don’t just sell businesses because of retirement.


There can be various compelling reasons for an entrepreneur either to sell his/her business or to switch over from one sort of business to another. The reasons can be something like, lack of liquidity, lack of passion, lack of skills, business too small for current aspirations and of course the classic reason being the retirement. In a case you find yourself belonging to any of the categories appended below, we would be delighted to assist you.





(i) Ease of Liquidity:

At some stage in their lives, entrepreneurs come to realization that most of their net worth is tied into the value of their business, and they happen to receive advise from their financial advisors or accountants to have their net worth diversified across various asset classes instead of putting all eggs in one basket. Or it could possibly be due to other reasons an entrepreneur may like to withdraw the money engaged in business. The reasons may be a medical exigency, plans to settle abroad or any unexpected expenditure.


(ii) Switching Over to Another Business Model:

There are surely some instances wherein you feel that better return on investment (ROI) can be extracted in case you could direct your resources to another business. Or there are instances, where you as an entrepreneur might be losing passion for the business, maybe day to day running of the business doesn’t excite you anymore. As we all know that businesses flourish when the leaders have passion for it. So often, we see that entrepreneurs lead their business to death because they are not excited about the business anymore. As someone has wisely said, if you don’t grow you shrink, and when you shrink you die. We believe the same principle applies to businesses as well. Businesses have to innovate themselves regularly and there are some entrepreneurs who realize they may not be right candidate to take the business to the next stage and thus decide to sell.

We come across entrepreneurs who get a kick out of starting a business out of nothing and then perhaps build it to 1M to 5M revenue mark and then sell it. Whereas there are certain entrepreneurs who like to grow businesses from 1M mark to 10M revenue companies. The key here is to know who you really are deep down and what skills sets you own. Businesses at different revenue levels would require different skill sets. In such scenarios, disposing off your current business and making arrangements to establish a new one at the same time can be troublesome.


(iii) Retirement Plans:

Retirement is still a classic example of why entrepreneurs decide to sell businesses. They have worked hard enough throughout their lives and the time has come to play golf, travel or to fulfill all those desires they have always dreamed of. However, this doesn’t mean that there is a fixed age number when every business owner thinks of retiring. We have worked with clients who sold their businesses in early 40’s because they could afford to retire sooner and then some in their 70’s. It is all personal, we believe everyone should have a plan for their lives and plan for their businesses.


(iv) Recession:

Well, it is rightly said in economics that someone’s loss is someone’s gain. You might be going through turbulent times in your professional life but there is always someone around the corner who is looking out to own the business setup like yours.

Most business buyers look for profitable businesses but that doesn’t mean if the business is not churning out profit, then it is not saleable. Every business can be sold as long as there is a right fit for it. We can help connect the dots and ensure that it turns out to be a win-win situation for both the parties.


(v) Good Business Value:

There are chances that you have achieved your desired goals much ahead of time and your business has grown more than you expected. As it is wisely said, sometimes its better to have a bird in hand than two in the bush. At the same time, you might be willing to try your entrepreneurial skills in another sector and for the same reason you want to let go off your existing setup.


With so many satisfied clients till date to our credit, we are on an expansion mode and are always looking out to serve to the best of your contentment. Integrity and trustworthiness are the indispensable qualities that we offer, and we do not compromise our ethos for growing our business.


We build relationships. We also sell businesses. How can we help?

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