Every single person starts a business for a completely different reason. It might be a passion they have around a certain area, it could be that they have out-grown their existing business and want to start out on their own, or it could just be out of necessity.
When you start a business, there is one thing everyone has in common. They all want to be successful, but most people have not planned what they will do once they become successful.
At what point is there enough success? Then when you figure it out, what is the next step?
One of the major tasks for every one in business is to have targets to work towards. They allow you to know when you are achieving your goals and when you need to re-align your work. Targets are the same for any one starting a business, just that they are a little bit larger.
A business could target £100 million, it could aim to capture the whole market, to become a world-famous brand, to sponsor a major sporting team. There are any number of targets to mark a business’ success.
Setting the target is only the start of the success though and there is a tough question when you do reach your target. What happens next?
Is the market still there and waiting for you to expand or become more efficient? Is it about branching out and finding new avenues to create more revenue streams? It could even be time to sell up and enjoy all the fruits of your hard work.
It is at this time that a lot of business start to think about the world of mergers and acquisitions. There are many reasons for even considering a buy out or a sell off and it pays to know what your options are. The M&A guide from BCMS is a great place to start your research.
The reasons that another business would want to buy your whole business can seem a little confusing. If they are in the same sector as your business, it could be that they just want to buy your contacts and the access into new suppliers or customers. This is a resource you have battled for years to build up, and it is one that you should not sell cheaply.
It might be as simple as you do one thing very, very well and rather than another business having to learn how to do it and make mistakes along the way, that they just buy it. Buying the knowledge and the technology with the people experienced in the process removes years of learning and finessing, this makes it financially a very attractive opportunity.
Selling a business is not always the final step in your working life, but it is one which needs a lot of consideration and information. The more you know about the issues and concerns, the better deal you will be able to make. It is all about walking away with enough capital to support the next phase of your life.