Selling your small business is never an easy decision. You put all of that hard work into building something that you wanted to see succeed and whether or not you were able to reach that goal, stepping away from it can be a tough choice to make.
However, who you sell to can make a hard decision even more difficult and, sometimes, your best bet is to sell your business to a competitor. That can also stir up a lot of emotions about the step you’re about to take in this entire process, but while it may seem like selling to the competition is the wrong road to where you want to be, it’s actually a very smart option that can end up being a lot more lucrative than you might expect.
When you’re planning to sell your business, whether you’re doing it alone or you’ve hired a business broker chandler, you may want to actively seek out potential buyers who are in your chosen field. They are more likely to know what the business is truly worth and their offer may be more akin to what you were hoping to receive in the first place.
Selling to a buyer who is unfamiliar with your business or the industry as a whole may not have a solid enough grasp on how things in your chosen field operate or they might be woefully unprepared to give a true analysis of the company and its various assets. That typically results in a lower offer than what the company may actually be worth.
There may be many or you might just have one. In any case, the decision to sell can be rough. Doing so to a competitor can be even harder but once you’ve made up your mind, you now need to find the right buyer. During this process, you will likely be asked on more than one occasion why you are selling.
When asked, always be honest. You’re ready to retire, you want to try something new, you’re just bored. Whatever the case, be up front and explain your standpoint. It will make the buyer feel more comfortable about the transaction.
Maybe you’re not quite ready to sell but a competitor has reached out about purchasing your business at a rather handsome sum of money. You may be a fool not to take it, this is a large expenditure we’re talking about here. When you’re in the driver’s seat with a possible sale of a business, you get to call the shots instead of the other way around. You have something someone else wants and now it’s up to you to decide if you should sell or hold on to the company.
Of course, only you can make the ultimate decision here. Here’s one thing you should never do, say yes or no as a knee-jerk reaction. Carefully consider your time, your family, what advantages selling might have and what disadvantages might come with a sale, especially to the competition.