Naperville Business Lawyer Discusses Knowing When to Sell Your Business

sell, Naperville business lawyerOwning a small or medium-sized business is, for many, the embodiment of the American Dream. Of course, dreams like this do not come true without hard work, intense research, and a strong commitment to perseverance. Considering how much time, energy, and money you have invested in your business, it is understandable that you might be hesitant to recognize the signs that it may soon be time to sell.

As a business law attorney, I have worked with many clients who had questions about when to sell their companies. While some ultimately decided to keep their businesses, many others chose to complete the sale and move on to the next chapter of their lives. To determine whether the time to sell is near, you need to take stock of your current circumstances, and there are several considerations that could suggest that selling is the right choice for you.

Reason to Sell #1: Your Passion is Waning

The most successful businesses are run by those who love what they do. In the early days of your company, you probably could not wait to get to work every day. Serving your customers and building your business were more than just tasks—they were why you got out of bed each morning. As time goes by, however, you may find that you do not love running your business anymore. When your company begins to feel like a hassle rather than an opportunity, you may want to think about your exit strategy.

Reason to Sell #2: Your Business Got Too Big for You to Manage

If your company is small and has just a few employees, you may feel perfectly capable of continuing to run your business for the rest of your working life. If your business has grown beyond your expectations, however, you may not feel that you have the knowledge and skills to run a larger version of your business. There is an admirable strength in acknowledging your own limitations, and in such a case, there may even be financial incentives to sell. A business that has grown quickly may be very attractive to investors and larger companies that may offer you top dollar to sell.

Reason to Sell #3: Changing Economic Realities

Some business sectors experience business cycles that are measured in decades while others explode onto the scene and fade relatively quickly—often forever. Economic trends and emerging technologies can affect your company’s profitability, and you need to stay ahead of the curve. For example, the shift toward online shopping in the last decade or so has made life very difficult for those who own brick-and-mortar retail stores, including booksellers, clothiers, and toy stores.

Reason to Sell #4: A Great Offer

One of the biggest indicators of a company’s success is interest from larger companies and other entrepreneurs. Even if your business is not experiencing any problems and no warning signs exist, a purchase offer could be simply too good to refuse—especially one that allows you to continue to work in your business for as long as you choose. Before you sell, however, you need to know what a fair price is. Otherwise, you might jump at a $3 million offer only to discover later that your business was worth $10 million.

An Illinois Business Lawyer Can Help

If you are considering selling your business, you probably have questions. Contact an experienced Naperville business law attorney to get the answers you need. Call 630-756-1160 for a confidential consultation at The Gierach Law Firm today.

 

Sources:

Inc.com

Business Insider