Why Sellers Sell Existing Businesses

Why Sellers Sell Existing Businesses


There are a number of reasons why someone might decide to sell their business. No matter what, rarely is the decision an easy one. A business is a major investment – and not just financially. To build a business from the ground up, one must dedicate a lot of time and make significant sacrifices. However, the decision to sell does happen often, and a transition of power is very common. Here are some of the most common reasons why sellers sell existing businesses.

  1. Retirement
  2. Burn Out
  3. Relocation
  4. New Business Opportunites
  5. Declining Revenues
  6. Increasing Revenues
  7. Negative Industry Changes
  8. Positive Industry Changes
  9. Partner Disputes
  10. Financial Reasons
  11. Lifestyle Change
  12. Health Issues
  13. Built to Sell

As you can see from the list, the reasons can be both negative and positive. Sellers might sell when the market is declining because they need to get out before the business’s value drops any lower. However, other sellers might see a strengthening market as an opportunity to sell and make the greatest profit while on top.

That said, there are also a number of personal reasons like retirement, burn out, health concerns or relocation. Retirement is an obvious one – a seller might be ready to take it easy after years spent building a business. At the same time, a local business owner might need to sell because their family is moving somewhere new. However, some might sell because they no longer feel as passionate as they once did about their business.

Feeling burned out and the desire to seek new business opportunities are not uncommon. For some, building a business because they are passionate about the service or product is their actual calling. For others, the passion might lie in the process (or challenge) of actually building a business. If that is the case, an established business may no longer have the thrill in risk it once did.

Finally, in some cases, partners disagree and finances are not as strong as they once were. In essence, the reason to sell can be anything from personal to professional and negative to positive – there is no exact science. As a potential buyer, the key is to find a business with great value and potential and not be too concerned about the reason it has been listed. If you are concerned the reason could be the declining market, then discuss this concern with your business broker before making an offer. Their expertise and advice may shed some light.

Contact Transworld Business Advisors Houston today to discuss what your next big move should be – no matter the reason or motivation behind it.