The reasons entrepreneurs sell their companies are many and varied, and of course depend a lot on the personal circumstances of the owner. Some common reasons for considering a business sale include:
– Retirement. The most common reason for selling out or handing the business to the next generation.
– Personal circumstance. Reasons might include illness or family reasons.
– Lifestyle reasons. In the last decade, many entrepreneurs have shifted to costal or rural areas for a tree-change or sea-change.
– Passion. Sometimes, an entrepreneur can just lose their spark and need a change of pace.
– Industry changes. A change in conditions within your sector – perhaps brought on by a shift in the competitive landscape, new
regulations or technological changes – could make your business less viable.
– Poor performance. When a business starts to struggle, sometimes the best option for an entrepreneur is to get out.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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