Ten signs that it's the right time to sell your business
Why sell your business? This may seem a strange question, but understanding your motivation for exiting your company is an important step in getting the buyer, price and terms you want when the moment comes.
How do other business owners know the right time to sell up and move on? In truth, any business sale comes about from a mix of business and personal reasons unique to the owners.
To help company owners thinking of selling, BCMS has analysed 50 former client businesses to highlight some common themes.
You are ready to retire
The most common reason for selling a business - for around 40% of BCMS clients - is that you have come to the end of your working life and want to convert your years of hard work and long hours into a nest egg.
In truth, most retirees still have some years left in them, but are often also exhausted or have had a health scare to provide a catalyst for a business sale.
When former BCMS client Gordon McQuilton hit his late 50s, he began plans to exit the healthcare business he founded, and says:I thought if I'm not careful, I would still be running my own business at 70 years old, trying to sell it.
Your work-life balance is out of sync
Family obligations, divorce, emigration plans, or simply a desire for a better work/life balance act as the main trigger in around a third of business sales advised by BCMS.
In these situations, enthusiasm and passion for running a business take second place to other priorities in life, providing owners with an opportunity to exit and focus on other life goals. The decision may be sudden or gradual.
Mark and Genevieve Rockett had run their marketing agency for 12 years - enjoying exponential growth - when this moment arrived. Genevieve says: "There's no way we could have carried on for another 10 years like that. It gradually dawned on us that it was time to find a home for the business."
You are always stressed or exhausted
With a 60-hour working week common for today's business owners, it's no surprise that exhaustion is becoming a significant driver for owners to exit. While the symptoms of business owner burnout can appear slight - tiredness, short tempered or lack of focus - the compound effect can lead to severe health issues if left to build.
Event technology entrepreneur Tom Woodard realised he needed to change after hitting 50 years old.
"I'd had enough," he says "I was running my own business and had acquired another one en route. I was ready for a change. Events are very tiring, and I didn't have the same level of energy I had 20 plus years ago."
You prefer starting businesses to running them
For entrepreneurs, starting a business is the most natural thing in the world. However, as the business develops you may have noticed that you've become increasingly stifled by the burden of managing and administering HR issues, health and safety, and IT upgrades.
You've taken your business as far as you can on your own, and the changing role means creativity, intuition and risk-taking give way to compliance, strategies and KPIs.
For telematics developer Winston Lee of Nyquist Solutions, this was his trigger for selling up.
"Life as a business owner had become quite stressful," he said. "I'm terrible at managing conflict, and it was difficult to handle people as employees rather than as colleagues. I didn't want to become a disciplinarian, it didn't sit well with me. So that had an adverse effect on the business, and it was obvious that I needed to do something."
Going global is too expensive
Even though you may have started out with world domination in mind, the high costs and risks of internationalising a business provide a natural exit point for many founding shareholders.
Common challenges range from pricing and payment methods to shipping and exchange rates, and from foreign laws and regulations to cultural differences or political risks. At this point in your business journey, you may wish to sell your company to someone with that global reach.
For example, hospital equipment manufacturer Sunflower Medical sold to Swedish industrial conglomerate Indutrade in 2017, and founding Managing Director Marc Byrnes says: