sell business

5 Common Reasons People Sell Their Businesses

The most common concern buyers usually express before brokers or a seller regarding the business is why the owners want to sell it in the first place? Investing in a business is a huge step forward and being cautious from buyers’ part is understandable, they want to know what they are getting into. If you, being a seller are not interested in what you are selling then do not expect someone else to show interest in it as well.

Sellers have a wide variety of reasons to sell their business but they will not always disclose them, not all of them at least. It does not mean they intend anything bad. It could only be because they fear of losing a good buyer or deal if they expose every detail as to why they are selling the business. Here we list a few very common reasons to sell among most of the sellers; one or two of these will definitely be the reason to sell for any business owner, even if they do not tell you.

They Are Simply Done Dealing With It

The most common reason any seller would have to sell out the business is that they are simply done dealing with it. They have fed a lot of their time, energy and money into the business but now it has simply grown into something they no longer connect to. Financial issues, falling revenue or poor performance might not be the factors here yet but it’s the lack of interest that might cause the business to reach there at some point.

They Got New Opportunities To Explore

This might be true or a made up reason but this one is also pretty frequently heard among business sellers. They might have found better business opportunity elsewhere or they might want to start a new business because that one just a better future ahead. While this all could be true it is possible that sellers give this reason only because it sounds better than many others and does not threaten any buyer apparently.

Their Business Is Experiencing Failing Revenues

There are multiple factors associated to declining revenues some of which businessmen have no control over such as falling economic condition or an increasing jobless rate. And then there are other reasons associated to failing profits is lack of interest from owners’ part, bad business idea, poor execution, ill marketing techniques, frustration and burnout.

They Ran Into A Partnership Dispute

It’s very exciting to begin a business with a partner, it begins with a lot of hope, passion, enthusiasm and motivation to work together and do something big but most of the times, if businessmen fail to understand or keep up with their partners, the partnerships end in disputes resulting in downfall of business. And that point the partners may decide to just sell everything off, divide their share and part ways.

They Simply Want A Change

Human beings are complicated creatures and when you see someone who just wants to give up all what they have built and start something new, believe them. They might sound crazy to you but they might just be telling the truth. Entrepreneurship is exhausting and you will find people who want to sell their business only because they want to start something new, they want a change in their lives, they are bored of what they have been doing for the past several years and they selling the business might have nothing to do with financial crisis whatsoever.


Sellers will have a myriad of reasons to sell their businesses, some of which will be true, some false and others simply made up not to ward off any potential buyers. Your responsibility, however, being the buyer is to carry out extensive research and due diligence before you seal the deal. Seek professional and legal help as well in this matter and make sure you are satisfied a 100% before you agree to buy the business.

Leave a Reply

Your email address will not be published. Required fields are marked *