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
There may be a large difference in the price obtained between the Losers (owners who continue to manage their business as before), and Winners,(those that consciously prepare it for sale).
When buying a business, buyers and their representatives (agents,lawyers) create a short list of a specific set of criteria. Among them are:
- More Cash and Less Inventory
- Positive Long-term Contracts
- Diversified Base of Customers and Suppliers
- Solid Capture and Retention of Order Data
- An Audit for the Prior Five Years
- A Strong Management Team