Reasons to Consider Selling Your Business
When a business owner is considering options to ownership there are many factors that impact that ultimate decision. At Baker Group MAC we work with our clients to identify those motivations and bring about the most desirable outcome. Below is a list of reasons why a business owner might begin to think about selling their business.
One or more of these might be influencing your decision to consider utilizing the services of Baker Group MAC, Inc. in selling your business.
- No liquidity – Most of an independent owner’s worth in the company is in accounts receivable, inventory, rental equipment, and vehicles. Many have little liquidity available to them.
- No Successors – There are no family members or employees that wish to carry on the business, and it is time to consider an exit strategy to provide for a well-deserved retirement.
- Tired – Time constraints involved with the day-to-day operation of the business leave little time for owners to relax and enjoy the fruits of your labors.
- No Guarantees – It may take you ten to fifteen years to make after taxes the amount that you could receive now after taxes. Why take the risk of continued ownership of a business if you cannot guarantee your future? If you cash out, you then have total control of your financial future without any concerns about the day-to-day responsibilities of running a business.
- Unforeseen Changes – The market or industry that you are in may undergo regulatory changes that comes with the need for additional education and costs to be compliant.
These changes can be burdensome and may affect the profitability of your business. An acquirer may be able to utilize economies of scale where the independent business owner cannot. It may be time to protect your investment of time and money by considering options to ownership.
The “Golden Ring” – The whole reason why you went into business as an independent entrepreneur was for pride of ownership. Consolidation may be taking place in your industry segment, and you’ve decided it is time to capitalize on your hard work. There is a window of opportunity when the value of your business is at a peak.
Contact Regional Associate, Jon Giberson today at 714-345-0714 for a consultation to discuss the value of your business.