Why sell your business to unknown buyers?

22/11/2022

You might want to keep close ties with your business, but then again you might not.

Who you decide to sell to will link to what you want for your business. So, if you are unsure about what you want to achieve, take a step back and get clarity.

If you are eager to make as much money as possible before moving on to your next venture, you should consider selling to an external buyer.

Should you sell to a competitor?

No one knows your industry better than your competitor, which makes the prospect of buying your business attractive to them.

If your goal is to get as much money as possible, selling to a competitor can secure a great deal for you.

In this circumstance, you need to forget any existing rivalry that you may have and approach the sale with a clear head.

Remember what you want for your business. As your competitor already runs a successful business in the industry, they will be able to ensure your business continues to thrive.

Plus, if they are looking to expand their operations whilst you want to move on, allowing them to buy you out could be a win-win.

What about a private equity group?

Depending on how quickly you want to move on, selling to a private equity firm can offer you some flexibility.

You can decide to sell shares of your business to the firm, which can help you to free up time as you head towards retirement.

This will allow you to still have an active stake in the business, but the responsibility of running the business isn’t solely down to you.

When opting to sell to a private equity group, you need to make sure that your vision for the business aligns with theirs.

The ultimate goal will likely be to grow the business. But think about how other factors, such as your staff, will be affected by the sale.

Once you are happy with the direction that the business will go in, you can gradually decrease your responsibilities and phase in the new management team alongside you.

For advice on exit strategies, get in touch.