Reasons to sell your business
Every entrepreneur will face it at some point: the sale of their business. Whether it's to take the next growth step or to take a step back, Marktlink's advisors are here to help you map out your personal motivations and determine the ideal exit strategy.
Elevating your business to a higher level is a significant driver for many entrepreneurs to sell their businesses, in whole or in part. There are numerous reasons to take that next step, depending on your ambitions. An opportune time to seek a buyer is when your business has been successful for several years and has achieved impressive results. Reason enough to be slightly apprehensive nonetheless, because where do you find that ideal buyer, and what’s in it for you?
There are several options for attracting capital. Depending on your future ambitions, you can choose to bring in a strong partner, private equity, growth equity or other investment firms.
This ensures continuity and sustainability for your business. While it's beneficial for your exit plans, it can also lead to significant professionalisation, enhancing the value of your business.
You have your own entrepreneurial convictions, but what about your competitors? How do they differentiate themselves, and what does that mean for you? It's crucial to know where your business stands and to identify areas for improvement.
Expanding into another country from scratch is a daunting task. Often, it's much easier to seek a potential buyer. A win-win for all involved, because successful businesses complement each other in various ways.
As a successful entrepreneur, you may not have kept all aspects of business operations up-to-date and modern. Joining another entity often entails professionalisation in HR, accounting, marketing, and similar departments.
When your business is running at maximum capacity, with little room for training and development, a sale often provides new opportunities and room for personal growth for your employees.
Marketing may not be your strong suit. You simply don't have the time or financial resources for it. But where can you find new target audiences and suppliers? Take advantage of the synergy benefits that arise after a sale.
Driven by economic developments or changes in your industry, a sale can provide a degree of security. Not only is it an opportunity to cash out part of the proceeds, but also to ensure the future of your business and your employees.
Entrepreneurs are hardworking individuals, carrying the responsibility for their businesses and employees day and night. A demanding role, and it's only natural to eventually want to take a step back. It might sound paradoxical, but you're better off preparing for that moment in advance. Entrepreneurship involves looking ahead, and good preparation is half the battle – reason enough to start today. Ultimately, this will yield the best deal.
Your business is your life's work, a cliché but true. After years of hard work, you want nothing more than a great deal, not only to cash out but also to leave the business in good hands so that your life's work continues to thrive for years to come.
As your business grows, the nature of running it changes. The focus shifts from entrepreneurship to management, which drains your energy. However, there are various ways to return to the basics and do what you truly enjoy: entrepreneurship.
Entrepreneurship is where your heart is, but over the years, your interests have changed, and you dream of a different type of business. To realise your ambition, you usually need a significant amount of money, which is tied up in your current business. A sale provides you with a substantial starting capital for this purpose.
Taking a few days off or going on vacation without worries is often impossible when you run a business. No matter how hard you try, your thoughts keep drifting back to work, which becomes increasingly burdensome. By selling (part of) your business, you gain more freedom to truly distance yourself from it.
You can't control everything in life. Your business may be thriving, yet the thought of selling it crosses your mind. This could be due to excessive stress, being embroiled in a business dispute, or significant personal events that prompt you to step back.
You can't see the forest for the trees: digitalisation, modernisation, tightened laws and regulations... All factors that sap the joy out of entrepreneurship. Perhaps you lack the capacity in terms of manpower, space or resources. Or you're just tired of all the rules and guidelines imposed from above.
Looking at your business model, you realise that not all units or departments fit equally well with growth and core competencies. Attempts to rectify this have been futile. In such cases, it's worth considering divestment and using the proceeds to scale up your current business.
Feel free to contact us for more information.