Strategic Reasons for Selling a Business
A business broker Vista is the first professional that is brought onboard when thinking of selling a business. The reason for this is because the broker has sold many businesses and knows exactly what buyers are looking for. Whether you are selling for strategic or operational purposes, our in-house business brokers at So-Cal Business Brokers can help sell fast and for the right price. In our experience, business owners sell for strategic purposes for the following reasons.
Gain market share
A business owner can choose to sell to a larger acquiring company in order to benefit from complementary marketing and distribution channels. What is more is that the larger company has a better brand recognition and goodwill. If you want to sell for this reason, our business brokers Vista will consider your options and determine if the option will be beneficial or not.
Finance an expansion
Part of a business can be sold to raise money needed for expansion. You can sell part of the business so that you get the money needed for new equipment, additional geographic reach and advertising. We recommend this option after a thorough business valuation. We will identify your strengths and weaknesses and recommend selling the thing that is pulling your business back.
Place better management
There comes a time when a business outgrows the skills of the owner. The option left is either to hire a new management team or just sell. Some business owners choose to sell to larger companies in order to leverage on the superior management of the larger company. After the sale, the business can be professionalized by getting better IT systems, equipment maintenance and accounting controls of the new owner. This keeps a business from going under. When you come to us for this reason, our job will be matching you with likeminded buyers who will agree to your terms and ones that have your business’ best interest in mind.
Diversify a focused customer base
Most small businesses have a huge percentage of their revenue coming from less than 15% of their customer base. Needless to say, customer concentration increases the risk of an enterprise because it can go bankrupt if a major client leaves. Diversifying the customer base increases revenue streams and lowers volatility. Selling to a larger business that is similar to yours can help diversify your customer base. The same goes for diversifying your product and service offerings.
Secure leadership succession
If you had not groomed a successor, selling can help find a qualified successor before you leave your business. Selling is often done to necessitate the sale of a business to ensure it continues to operate effectively.
Regardless of the reason you are selling for, So-Cal Business Brokers is here to help. Our business brokers Vista will match your business to the right buyer and guarantee the continuity of your business after you leave.