How to Sell your Company?
Contrary to popular belief, companies are not sold just because they are bankrupt or in trouble. There can be a number of different reasons that lead to selling the company, it should be perceived as tradable product, with value, as any other.
In the USA, more than 18% SME’s change hands annually with average selling prices above Us$210.000. In Ireland we estimate that less than 1% of all SME’s are traded annually.
Main reasons for selling SME’s:
It can be owner's personal reasons:
- The owner(s) wants to cash in on capital gains;
- The owner(s) is just tired and wants to change his life;
- The owner(s) have family constraints;
- The owner(s) have health problems;
- The owner(s) have partner problems;
- The owner(s) are incapable, or unsuitable, of taking the company to the next stage of its development;
- The owner(s) have financial difficulties.
Or economic, strategic reasons:
- Market expansion;
- Market repositioning;
- Integration/disintegration in the value chain;
- New opportunity to fill;
- Product/Service line extension.