Being able to determine the validity of a seller’s answer to
the question why a business is for sale is crucial to a buyer’s return on their
investment of capital and time in the transaction.
Whatever answers the seller provides to this key question, a
buyer should continually validate that answer with direct and indirect probing
questions during interactions with the seller, until a complete comfort level
is reached.
Here are some of the most common reasons business owners sell
their businesses, and some of these are never honestly disclosed to the buyer.
Remember, it’s the buyer's responsible to ensure an understanding of the “why”
question, whether disclosed or not by the seller.
- Retirement
- Need funds to finance another venture
- Tension between management and/or staff
- Sick of dealing with bureaucracy
- Not generating enough income
- In anticipation of impending changes likely to make the industry more challenging (e.g., exiting DVD rental sector might have been shrewd move in recent years as online download market accelerated)
- Economic downturn
- Fulfillment of a long-term exit; hit profit and revenue targets
- Ideal juncture in the economic cycle
- Perception that business is at its peak; value will never be higher
For a complimentary consultation
Contact Cecil Williams
For more information call me at 888-925-5055 ext.206
Visit my website to search for business for sale in Florida
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