Why Sell, You’re Making Money?
Most buyers believe that there must be an inherent problem with a business if a seller appears to be making good income and still wants to sell their business. This however, is not necessarily the case. There are many business owners that have been steadily working in their business every day for many years and just like most people (maybe even you), they want a change in their lives, even if the business is producing a good income. Over the past 24 years of being in business brokerage, we have heard many reasons for the business owner wanting to sell. You may think of the usual reasons as death, divorce, health, lack of income however just plain "burn out" ranks very high. Many business owners are embarrassed to say they are just burned out and ready for a new challenge in life or want to simply take a break. You might think this is easily remedied by hiring a manager to run the business however many business owners have trouble delegating and hiring someone still won't solve them wanting out of the business and responsibility all together; even when the business is appealing and making good money. As business brokers we always ask the seller to be honest with us and it is not surprising that we hear “burn out" or "I want to make a lifestyle change” from many very successful business owners. What does this mean to a Buyer? Many astute buyers can look at a business and see that the owners are “tired” and this could be a great opportunity to purchase the business and put a plan into action to take the business to the next level. I witnessed a business owner tell the buyer that the 1.7 million gross was all that the business was capable of grossing and after his 18 years, he was ready to move on. The buyer took the company to $14 million gross by simply doing the things that the seller was just too burnt out to do. We have all heard much of our lives “if it sounds too good to be true then it probably is” however we do see great opportunities for energetic buyers where the seller just wants to “move on”. How do you find these opportunities? Keep in touch with your First Choice Business Broker, make sure they know this is the type of opportunity that would interest you. There may be a business out there, in an industry you haven't even considered, that is the true opportunity for you to utilize your skill set. Keep in mind you must be ready to move fast as these “deals” go quickly as other buyers will also recognize the opportunity.
Published by Jeffrey and Linda Nyman – March 6th, 2017