This question was posed to me recently by a radio show host.
Kidding aside, it is a valid question. There are lots of reasons. Personally, I like the morbid ones: death, divorce, health issues, and not because I wish anyone harm. Rather, I think those are better motivators to get a deal done.
The one answer sellers give which many people have difficult with is “other business interests”. This reply naturally begs the same question that the radio show host asked me.
It is entirely possible, and common, that some people just get bored with their businesses.
Haven’t you ever been bored with your job? Perhaps a better question would be: “Have you ever had a job you loved?”
I have found that seller’s boredom is usually a result of them putting the business on cruise control for too long. They have lost their passion. They no longer look at their businesses and try to find ways to get bigger, better and faster everyday.
It is certainly a situation that a buyer can use to their advantage.
Specifically, are there any looming threats such as: pending legislation that could alter the business or, one large customer who will no longer be buying? Is a major competitor moving into the area, or local demographics that can alter the business significantly?
Of course there are many other possible scenarios which you need to investigate. Or, it may simply be the time has come to sell a business.
Skepticism, I believe, is one of the two most important characteristics that a good business buyer possesses. Use it effectively and not to paralyze you from buying a business, but rather to force you to conduct a flawless investigation and analysis.
The other characteristic is perseverance.
This article represents a fraction of what you’ll learn on this topic in the How To Buy A Good Business At A Great Price© series - the most widely used reference resource and strategy guide for buying a business. To learn more click here
One of the biggest problems with small businesses is that often times, the owner does everything. When these businesses are for sale, it is common to identify them as ones where thContinue Reading >
The business for sale market has always had one consistent trend regardless of the overall economy. When a solid business, with provable financials, that can be operated by a wideContinue Reading >
There is an industry understanding that only around one third to fifty percent of all businesses listed for sale actually get sold. This figure is not one that business brokers wilContinue Reading >