For the past 20 years you have built your business. Your company has become part of your identity. Even when you are not at work, you are working, thinking, planning.
You are faced with a major capital requirement in order for your company to maintain its competitive position.
You are faced with a major capital requirement in order for your company to maintain its competitive position.
- You are supposed to be diversifying your assets, not concentrating them even further. Think about a simple payback analysis. Does that extend beyond your retirement date? You want to be able to defend that investment with the energy and intensity you devoted when you were originally growing your business. Maybe it is time to bring in an equity partner with smart money, an industry buyer with the management depth, infrastructure, or distribution network to protect that investment. You might consider selling now with a three year employment contract that would expire on your previously planned retirement date. Let the new owner defend the required capital investment.
Sell My Business - A large competitor is taking market share away from you.
Believe me, the news is not going to get better. As an investor you would probably sell the stock in a company you owned if Microsoft or GE decided to assume a presence in that market. Business owners often struggle with objectivity when a similar event takes place in their own company’s industry.
- Your legacy systems, production capabilities, or competitive advantage have been “leapfrogged” by a nimble entrepreneurial firm.
This happens all the time and can cause an erosion of your customer base. Your inertia will sustain you for a while, but eventually you will begin to experience customer defections. Your options are to rewrite, acquire or sell. If you decide to sell, do so before losing too many clients.
- A giant company in a related industry just acquired one of your major competitors.
Watch out, they did not make this acquisition to maintain status quo. They want to grow their market share and that means they will be coming after your clients. The good news is that as a defensive measure, one or more of their competitors will be compelled to make a similar acquisition. It is best to be aggressively ahead of the curve and get acquired while the market is hot and prices are being bid upwards.
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