Our clients sold their companies for various reasons. No matter what, it is an inevitable reality that a business owner will have to QUIT at some point of his/her life, including when under the following circumstances:
(2) Health conditions, Change of lifestyle
(3) The lack of successor
(4) When a more profitable business opportunity emerges
(5) Cash out
(6) Other personal pursuit
(1) I don’t need it now
Under normal circumstances, it could take 1-2 year for a company to be successfully sold, if you take into account the preparation time, and if you wish your asset to be sold at maximum value. It is too late when you really need to sell.
(2) Sell to your competitors/friends
“As a sophisticated businessman, I have established relationship with many competitors and other businessmen. Why should I sell through a middleman?” This is one of the mistaken belief we have often come upon. The truth is your competitors or business partners will usually be less willing to purchase your company at a high price, due to their belief that they have good understanding of your company.
(3) My company has an excellent prospect
We believe capable entrepreneurs will do their job well, but all businesses and industries have a market cycle. Rational and correct decisions are crucial components of success. We should avoid emotional affection to influence a business decision. Therefore, if growth is diminishing, or a more lucrative opportunities emerge, perhaps it is the right timing to exit.
(4) Successor will take-over
It is old Chinese’s belief that children or family members shall become the successor. However, it will not always happen now. It may also be inappropriate or unwise to let your manager take-over your corporate.