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Reasons To Consider The Sale Of Your Business

Deciding to sell your San Diego or Southern California business is a major decision. There are several reasons why a business owner might do it. Let’s discuss the most popular reasons small business owners decide to sell their business.

Selling was always the plan

For the serial entrepreneur, selling their business was the plan right from the start. Some business owners thrive on taking an idea, making it a reality, and creating a successful company. They might enjoy the start-up process, but once the company grows, these serial entrepreneurs might not enjoy the responsibilities of running a bigger company. Vanguard Resource Group (VRG) represented the seller that started their business in their garage, grew it over the years, and finally became the market leader in their industry. Once it reached that point, the seller felt it wasn’t “fun” anymore for them. So VRG sold the company to a seasoned business executive accustomed to running a larger company with many employees.

Given your economic success, the timing seems right

The best time to sell a business is when it is doing well. While this may feel counterintuitive, the time to maximize your sales price happens when the business is most profitable. If an owner is near retirement age and the business is doing well, they often decide to sell because of this fact. Selling a business on its way up rather than down is much easier.


Burnout is one of the most common reasons a business owner might decide to sell. Owning a business can weigh heavily on its ownership. Lack of time off, always being on call in the event of a disruption in the business, and dealing with employee issues all take their toll. Selling the business can offer the means and the time to spend more time doing something more fulfilling. But remember, it is always best to sell your business before your burnout negatively impacts it, making selling more difficult.

New or other interests

Sometimes San Diego business owners simply desire to do something different. The seller may have another business that they find more interesting or challenging. They may have devoted the last twenty years to their current industry and wish to pursue something they are more passionate about. Vanguard Resource Group has sold many businesses that were doing great but where the founder wanted to pursue their passion for golf, racing, or even starting a non-profit.


Sometimes, as they said in the movie Jerry Maguire, business owners just want to say, “Show Me the Money.” While the sale of a small business does not often afford the founder to cash out and move to Tahiti, it sometimes can.

Often, the business owner’s net worth is completely tied up in their business. Therefore, some business owners decide to “take some chips off the table” by selling their company to diversify their holdings. The sale of their business might be the entire business, or perhaps the sale of a majority of their business to a private equity group, but they keep an ownership interest, allowing them to get that “second bite of the apple.” This gives them immediate net worth to diversify but keeps them involved with a business they know is doing well and thriving.

Occasionally, selling your business is about something other than the business. The business owner may have an urgent need for cash to cover an emergency or other unforeseen circumstances. But whatever the circumstances, selling your business allows the business owner to convert the value of your business to liquid cash and use it for other purposes.


At some point in most business sellers’ lives, there comes a time to call it a day. They have worked very hard over several decades, and the seller would like some time to enjoy the fruits of their labor. While this often results because a seller hits a certain age, it also can come because of health issues. Retirement is very often the reason for a sale. And buyers like retiring sellers because they believe the new owner’s energy can take the business to a new level. However, buyers are often weary of “retiring sellers” who are 40 years old, don’t have a considerable personal net worth, and where the business sale will not generate enough cash for the owner to retire.


Sometimes an owner may look forward to selling the business and moving to a new part of the country. Other times, the desire to relocate may be required for family reasons or because of a spouse’s job transfer. When relocation is the reason for selling a business, it may impact the timeframe or the selling process. Business sellers should start the process early so that the business broker has time to market the business for the highest possible price and that the seller has sufficient time to train the new owner.

Of course, there are many other reasons why a business owner might desire to sell. Regardless of the reason, Vanguard Resource Group, San Diego’s best business broker, has the experience and expertise to assist.

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