When you own and operate a business, you must make many important decisions. Some effect the day-to-day operations of the company, while others are focused on the long-term health of the company. While you may not be comfortable with the idea, you may also need to decide if and when the time is right to sell your business.
In my practice as a business law attorney, I am frequently approached by clients who have thought about selling their companies. They often have similar questions and concerns, wanting to know how to identify the right opportunity and what to look for in making such a tough decision. As with most aspects of running a business, each case is different and what works for one company may be disastrous for another. There are, however, a few considerations that are applicable to most industries, and being aware of them can help you make the right decision.
Seizing an Opportunity
Holding on to your business for too long can result in financial disaster. This is especially true for startups and companies prone to so-called “bubbles.” The dot-com bubble of the 1990s is a good example of this factor. Owners who jumped at the right opportunities to sell made millions while many who missed their chances ended up in bankruptcy when the bubble burst.
Business owners who operate in a more stable industry may also be presented with very profitable opportunities for selling their companies. A larger company may see potential in a smaller one, or may simply wish to eliminate budding competition. Only you can know for sure if a particular offer is enough. While businesses operate on capital, there is likely more to your decision than just money.
Planning Your Escape
In some cases, a business owner—due to a combination of fortunate circumstances, entrepreneurial foresight, and hard work—may be able to sell his or her company without ever actually putting in on the market. The owner, instead, is approached with an offer or offers from prospective buyers. In other cases, an owner may reach his limit—personally, financially, or both.
Over time, you may become burnt out and your motivation for running your company may wane. Or, you may feel that you have done as much as you can with the business and that is time to move on to something new. It is also possible that you no longer have the time or money to invest in your business venture. If you are experiencing one or more of these feelings on a regular basis, the time for selling your company may be approaching.
We Can Help
The decision to sell your business is not an easy one and should not be made lightly. Contact an experienced Naperville business law attorney to discuss your situation today. We will help you explore all of your available options and work with you in finding the best course of action. Call 630-756-1160 for a confidential consultation at The Gierach Law Firm.