Why do business owners decide to sell?

Business brokers in Melbourne will tell you there are a multitude of reasons why owners decide to put their business up for sale. If you’re looking to purchase a business and wondering why someone would put up a successful business for sale in Melbourne, or perhaps you have a business and you haven’t thought about selling; below we take a closer look at the most common reasons why people come to a business broker Melbourne to put their small business up for sale.

Health and family reasons

A lot of business owners come to business brokers in Melbourne not because they want to but because they have to. Running a small to medium sized business takes up a lot of energy from the owner, and if the owner has been diagnosed with a health problem that requires a lot of recovery time, they then can’t put that energy 100% into the business. Also, sometimes circumstances change, and if a business owner has a young family, running a business can take away from those precious moments in life you may never get back again.

Fatigue

As mentioned above, a business broker is called upon by a Melbourne business because the owner is not ill, but physically drained. They may not have a long term illness, but if the ongoing daily grind of operating a business leads to becoming tired, bored, or burnout, then it’s definitely time for a business broker Melbourne to step in and help put the business up for sale.

Looking to retire

There reaches a time in everyone’s life where we need to hang up our business running or working gloves, and look forward to long, relaxing days doing whatever it is we’ve always dreamed of doing in retirement. For business owners, their business has been their life for so long, that the idea of doing something else is hard to imagine. However, by engaging with a business broker in Melbourne, they can take care of the difficult parts so the owner can focus on getting ready mentally to hand over the business, or consider the options for their retirement.

New business opportunities

There are plenty of times in a business career when a new opportunity may present itself. Buyer demand may be particularly strong in that particular industry, so owners can sell for a great price. Alternatively business owners may be simply ready for a change and so seek a new opportunity. No matter the opportunity, business owners come to business brokers in Melbourne, because they can help them prepare for their new challenge.

Going for broke

Many businesses face the challenge of needing to evolve and be innovative. With changes in society and technology, there have been plenty of once flourishing businesses that have become obsolete. If a business can’t tackle those challenges head on, the better decision is to sell before they end up completely broke. Unfortunately, for a lot of businesses, cash flow also becomes an issue and they have no choice to sell because of bad business decisions or the threat of bankruptcy.

Partnership dispute

Business partnerships can end for a range of reasons which initiates the need for a business to sell. However, sometimes the partnership in question may not be business related. The breakup of a marriage can mean that assets need to be divided up, and so it is necessary to sell a business in those circumstances.

Looking to “cash out” and take the profit

If a business has been doing incredibly well, this can be the ideal time to cash out and enjoy the financial freedom that comes with it. You might be at the pinnacle of your business career which makes your business very attractive to other parties and can net you very lucrative pay day. There is an unwritten saying in business that owners should always be looking to exit, not because their company is in a bad position, but because it makes smart business sense. So, it makes sense that many businesses follow through with taking those opportunities when they come up.
The fact remains that people have all kinds of reasons to put their business up for sale in Melbourne. Regardless of the reason, there is value in the need or decision to move on. If any of these reasons have got you thinking ‘I should sell my business’, then come and speak to us at AJW Business Brokers. We have the lowest commissions, and as your dedicated business broker in Melbourne, we’ll get your business sold no matter the reason for your decision.