Business broker Los Angeles is charged with the responsibility of finding the right buyer and ensuring that a business is sold at the best possible price. But the question you have at this point is why small business owners choose to sell their businesses. With there being over 28 million small businesses in the United States – according to BizBuySell – it is safe to say that not every small business owner sells his business. For the few that sell, their actions are motivated by many things. The top reasons include the following.
They get a great offer
The number one reason why small business owners’ end up selling their companies is because they get great offers from bigger companies. Running a business can be risky because the market is unpredictable. So when a small business owner gets an amazing offer, they choose to go for it. This is often an offer that is way bigger than what their business is currently worth. However, after getting such an offer, you must always work with your CPA and business broker Los Angeles to ascertain that the offer is a great one.
The need to retire
You don’t have to be over the age of 60 to retire. There are people who retire while in their forties and fifties. If your business is doing really well and you don’t want to continue running it, you can choose to retire and live on the money you get from the sale. The good thing is that if your business sale is motivated by retirement, selling it is much easier. You can continue working with the company on limited capacities like an employee or for a few more years as a consultant. Even so, this is not something you should do on your own. Get the help of experienced business brokers Los Angeles to advise you.
Want to jump into a new opportunity
At times, you might get bored of running a business. Other times, a better opportunity might be lying ahead. In this case, a small business owner can sell his old business in order to finance his next venture. This is common among serial entrepreneurs. A research by the National Bureau of Economic Research shows that once a person becomes an entrepreneur for a second chance, chance of becoming one a third and fourth time are high. Selling businesses helps the serial entrepreneur to get the capital, experience and time they need to pursue a new venture.
Family and health issues
Some business owners sell their business for health and family issues. This happens when the owner is no longer capable of running the business. Before selling under any of these circumstances, you have to consult with a business broker Los Angeles to find out if there is an alternative way of running your business.
Death of the owner
Last but not least, if the owner dies and there is nobody willing or capable of running the business, then the business has to be sold.