Selling A Business
The Real Reasons For Selling A Profitable Business in South Florida
When a well-managed company with a consistent track record of profits is put up for sale, the offer is often viewed with skepticism. Buyers wonder why anyone would want to sell a business that is generating a cash surplus month after month and year after year.
In fact, it is likely that the first question that a prospective buyer asks will be related to this topic. There is also a possibility that the answer that is provided will be viewed with a certain degree of suspicion.
After all, why would anyone put up a successful business for sale?
It’s important to understand that there are many different reasons why a business owner would want to sell. Some of them are what you would expect, while others are less obvious. Here are the most common reasons for an entrepreneur wanting to offer a business for sale:
Retirement
The vast majority of buyers are satisfied if the transaction has been prompted by the business owner’s desire to retire. An individual may have spent 30 or 40 years building a company. Now this person needs money to pay for retirement expenses. In these conditions, selling the business could be the best option.
Boredom
However, every person who is trying to sell a business is not approaching retirement age. Some sellers may have had enough of a particular line of business. This could hold true even if they have made a great success of their venture. The owner’s desire to move on and try something different could result in a thriving business being put up for sale.
Breaking up of a partnership
Many successful businesses are started by two or more people joining forces. But it’s a fact of life that some partnerships break up. If this happens, it could lead to the business being sold. A firm may be run by a husband and wife team. If they happen to get divorced, it’s highly unlikely that the business partnership will survive.
A reluctance to bear risk
It’s easier for a business owner to take chances when he or she is starting out. There is relatively less to lose at this stage. However, once the venture has been established and is generating healthy profits, there is more at stake. Many entrepreneurs want to quit when they are ahead. They would like to liquidate their investment when its value is at its peak.
The bottom line
Buying an existing profitable business presents an attractive opportunity for new entrepreneurs. Although it’s quite natural for buyers to wonder why a company owner would want to sell a business that is continuously generating a cash surplus, they should look at this issue from a different angle. Would they even consider buying a business that was making losses?
Sunbelt Business Brokers of West Palm Beach provides dedicated business brokerage services for all of your buying and selling needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing, Suite 216 Palm Beach Gardens, FL 33410 or contact us at (561) 832-9222. View available Businesses for sale in South Florida.
