Just as you needed a plan to get into business, you also need a plan to get out of it. Selling or disposing of a business requires some forethought, strategizing and careful planning. In many ways, it’s more complicated than starting a business. For instance, while there’s really only one way to start a company, there are at least three primary methods for entrepreneurs to leave the businesses they founded: selling, merging and closing.
Deciding to sell the business you have worked so hard to grow is rarely an easy decision. However, it may be the right one under some common circumstances. Selling may be preferable to owning if:
- You want to do something more challenging, more fun or less stressful.
- The company needs new skills, a new approach or resources you can’t provide.
- You don’t have enough working capital to keep going.
- You are ready to retire and have no heir to continue the company
- Partners who own the business decide to dissolve their partnership.
- You or another owner get divorced and need cash for a settlement.
- One of the owners dies or becomes disabled.