Eventually all business owners will need to exit their business.
Reasons may vary but they revolve around the following factors:
- Retirement because of age
- Health problems of the owner or their family
- A change in circumstances impacting family finances
- Unexpected family issues
- Change of interests and no longer passionate about the business
- An unexpected offer
- Pursuit of new venture
- Need to raise money
- Desire to spend more time with family or take care of a loved ones
- Death of owner/financial difficulties
- Desire for liquidity and asset diversification on the part of the primary shareholder
- Competitive pressures. Unable or unwilling to compete..
Having established that exiting is unavoidable, the wise business owner will create an exit strategy while still many years away from departure and will run their business with the view of securing the best possible price when that time comes.