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.
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.
Market expansion;
Succession;
Restructuring;
Market repositioning;
Integration/disintegration in the value chain;
New opportunity to fill;
Product/Service line extension.