Four Signs That It Might Be Time to Sell Your Company

Sell your business, Naperville business law attorneysFor many individuals, owning a business is the realization of a lifelong dream. You may have worked for many years doing the necessary research and building the knowledge base on which your company operates. Thus, the decision to sell your business is often extremely difficult, even when it is the right choice.

In my practice as a business law attorney, I have helped many clients determine the appropriate time to sell their closely-held businesses. The process begins with a careful analysis of your current situation. There a few indicators that could be suggesting that now is the time to take action, including:

1. You Do Not Love it Anymore

When you started your business, you probably did so because you had a passion for what you do. You knew that you wake up every day looking forward to serving your customers and working within your chosen industry. While the old maxim “Find something you love and you’ll never work a day in your life” may not be exactly true, if running your business starts to feel like a chore rather than an opportunity, it could be time to get out and move on to something else.

2. Your Business Has Outgrown You

A startup or a small family business may begin as a modest venture that is well within your capabilities to run properly. You could be perfectly suited to manage a company with a few employees that serves a certain volume of customers, but exponential growth could leave you struggling to keep up with the changes. If you are not capable—or willing—to take on a leadership role as in a larger version of your original company, selling the business might be necessary.

3. Market Pressure and Economic Realities

While some industries are characterized by cycles of success and struggle that span decades, others peak quickly and fade away, virtually forever. Market trends and new products can threaten your bottom line quickly, and it is important to stay ahead of the curve. For example, casual dining chains like Applebees have noticed a sharp decline in sales due to consumer attitudes in recent years. If you own a similar franchise, you may want to start considering your exit plan.

4. A Buyer Made You an Offer You Cannot Refuse

If you have put your business in a strong market position, you may start to get offers from larger companies or other entrepreneurs. While you may not see any warning signs of possible problems, sometimes a cash offer—or an offer that includes long-term incentives for you—is just too good pass up. It is important, however, to know what your business is worth realistically. A $5 million offer may sound great, for example, but if your company is actually worth $20 million, you could be shortchanging yourself.

Call Us for Guidance

Selling a business can be a complex endeavor. If you have questions about the process or would like to know how to properly evaluate your company, contact an experienced Naperville business law attorney. We will help you find the answers you need while providing the responsible representation you deserve. Schedule a confidential consultation today.

 

Sources:

Inc.com

Plancorp

Business Insider