November 2025 Newsletter
Top 20 Reasons Why CEOs and Business Owners Sell Their Businesses
When it comes to selling your business timing is everything! Optimally, you want to sell when your business is healthy and growing, the economy is healthy and you are healthy.
There are many different reasons why business owners choose to sell their business. There will come a time when selling your company might be the best decision you can make. At that time it will become a very high priority for you, and being prepared with the right team behind you will be critical. Valuations are very high currently so this can be a tremendous opportunity for any business given a recession is long overdue.
The team that you want to have in place is 1) A full service M&A advisory firm like CEO Advisor, Inc., 2) An experienced corporate / transaction attorney (CEO Advisor, Inc. can help with a referral if you don’t have one), and 3) A CPA firm or tax advisor (again, we can help with a referral, if needed)
You want to have an exit strategy and proactively sell your business on your time-frame through a competitive sale process to multiple prospective buyers. As experts in mergers and acquisitions, CEO Advisor, Inc. can help you to identify the optimal time to sell your business by discussing your situation, assessing your business, creating an exit strategy, and fully preparing you and your company in order to maximize your value and bringing your company to market for an optimal price and terms.
Below are 20 reasons why CEOs and business owner sell their businesses:
There are many different reasons why business owners choose to sell their business. There will come a time when selling your company might be the best decision you can make. At that time it will become a very high priority for you, and being prepared with the right team behind you will be critical. Valuations are very high currently so this can be a tremendous opportunity for any business given a recession is long overdue.
The team that you want to have in place is 1) A full service M&A advisory firm like CEO Advisor, Inc., 2) An experienced corporate / transaction attorney (CEO Advisor, Inc. can help with a referral if you don’t have one), and 3) A CPA firm or tax advisor (again, we can help with a referral, if needed)
You want to have an exit strategy and proactively sell your business on your time-frame through a competitive sale process to multiple prospective buyers. As experts in mergers and acquisitions, CEO Advisor, Inc. can help you to identify the optimal time to sell your business by discussing your situation, assessing your business, creating an exit strategy, and fully preparing you and your company in order to maximize your value and bringing your company to market for an optimal price and terms.
Below are 20 reasons why CEOs and business owner sell their businesses:
- Your Overall Exit Strategy Is to Sell Your Business. There are business owners who invest in building a thriving business to eventually sell later on at an optimal time for a huge sum of money. If a well-planned exit strategy is your purpose for starting the business in the first place, then it's a great reason to sell the business as soon as you have reached your desired growth and exit strategy goals. Having an exit strategy is critical to every business, and CEO Advisor, Inc. can help you to discuss your options, execute on your exit strategy, prepare for the sale of your business, and provide a proactive, full-service sale process at the proper time.
- Your Business' Value Has Improved Significantly. If you have considered selling and your business is now growing substantially, it can be the optimal time to sell. Selling on the way up is important so don’t wait until you subsequently have a flat or down year. Running a business is risky, and the bigger you get, the larger the risks you have to face. The value of your business is not liquid until you go through the transaction of selling your company and realizing this life-long opportunity.
- Your Business Doesn't Have the Capital to Grow or Survive Long-Term in a Highly Competitive Market. Private small and mid-size businesses are highly illiquid. Without adequate capital, you can't realize the full potential of your business. If you need liquidity contact an M&A advisory firm to accomplish your goal of selling your business to a strategic or private equity buyer. This can be more advantageous today given the high valuations.
- You Don't Have the Energy, Specialty Skills, or Capital to Grow the Business. One primary reason to sell a business is that you don't have the energy, time, experience, specialty skills, and capital to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you'll feel you can't generate substantial growth. This is the right time to sell your business and entrust it to those who have the skills and resources to grow it to the next level.
- You Experience Fatigue or Lack of Alignment. If you got into running a business for the wrong reasons or the market opportunity has changed dramatically, you will eventually experience a certain level of exhaustion that will no longer be healthy for you physically, emotionally, and mentally. If you think that there is no quick fix for the burnout you feel, and you don’t see a feasible and economical way to increase sales, profits and cash flow, then it's time to sell and realize the opportunity of today's high valuations.
- Your Business Has Substantial Sales Growth. One reason entrepreneurs choose to sell their business is that it has experienced substantial growth, but you realize the next leg of growth will be extremely expensive and take years. This growth is extremely appealing to buyers and you can gain a higher valuation from the sale. Some business owners just want to take a lump sum of money from the sale, and the best time to do this is when you can show substantial and consistent sales growth and earnings.
- Your Personal Interests and Motivations Change. After years of running and growing your business, you may conclude it doesn't feel as interesting and exciting as when you started it, and you're losing your passion for your business. This is a sign that you should consider selling it. Over time, it's normal for your interests to change, and you should capitalize on a well planned exit strategy to sell while you are relatively youthful and have the passion to do something new.
- You Receive an Offer Too Good to Turn Down. We always recommend to fully prepare for a sale, and to proactively conduct a competitive sale process to many targeted prospective buyers. But if a buyer presents an offer you can't refuse, it can be ample reason to assess this offer and engage with an M&A advisory firm to pursue the sale process. Such a strong single offer out of the blue is rare, but if an offer is priced well above the market value for your business it may be the right time to pursue it. Again, your optimal method to sell is to prepare for and initiate a competitive sale process to many potential buyers using a seasoned M&A advisory firm. But, you never know when a serious buyer is going to knock on your door so be prepared to sell at all times with the expertise and experience of a team of experts.
- You Want to Have a Fresh Start. Entrepreneurs have other motivations to sell their business and one of these is the desire to start a new business. Some entrepreneurs go into business because they want to start and build something bold and take a risk. This is what drives their spirit. If a business has already reached a certain point of growth and stability, some entrepreneurs just want to move forward, sell the business to cash out on their hard work, and start something new and exciting. Although you need to plan on staying up to a year or two with the buyer in most cases in order to get a deal done, starting the sale process now will get you to your goal sooner.
- You Need More Time for Your Personal Life. At some point, as a business owner you will finally realize that running a business takes too much of your time. When the time comes that you will need more time for your family, to take care of your health and/or your personal life, then selling your business is a good way to do it. Be proactive and contact an M&A advisor as the process of selling a company is complex so you want to start as soon as possible.
- You Want to Retire. The majority of entrepreneurs plan to sell their business as an exit strategy to provide for a comfortable retirement. Most business owners plan to sell their business rather than keep it in the family or hire someone to run it in their place when they retire as this is very risky. The driving force for this stems from the lifestyle many entrepreneurs face and lack of savings for retirement. We work with many senior leaders of companies and our advice is always the same – sell when you are relatively young and healthy. If you are in your mid to late 60s now is the time to contact an M&A advisor.
- You've Achieved Long-Term Financial Security. One reason to sell your business is if you have achieved a certain level of financial security from running the business and you want to step down and start a less stressful lifestyle. You don't need to fully retire to do this, as you can take on a temporary lesser role or a consulting role with the company after a sale of your business. There are often options such as a majority sale to a private equity firm, and CEO Advisor, Inc. has the contacts and expertise to manage this for you. At this point, you want to sell all or a majority of your business when valuations are peaking and sales are on an upswing.
- You Feel Physically & Mentally Exhausted. As a business owner, you are most likely the hub of your business and make most of the major decisions. This can be physically and mentally draining, and the time will come when your responsibilities as a CEO or business owner will take its toll on you. If you feel physically and mentally exhausted running the business, then it's time for you to initiate a sale process. Don't wait until an illness or excessive fatigue sets in before you decide to sell, as the buyer will typically expect you to remain with the company for 1 - 2 years.
- You Want to Take Advantage of Low Capital Gains Taxes. The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates if you can achieve a straight stock purchase. If you are at an age near retirement, or if you have already grown and stabilized your business, then it may be best to sell your business and take advantage of taxes at such relatively low levels. Remember, there is always the risk of a recession, health or other issues so be proactive.
- You've Become More Risk-Averse. Risk is essential to your business' continued growth. If you have become risk-averse, and you get to the point that new opportunities invoke more fear than excitement, it is a sign that you should sell your business. Becoming too conservative means losing your drive to grow the business, and this alone is a good reason to sell.
- Your Business Partner Wants to Sell. If your business partner wants to call it quits and move on, you have the option to either buy out his/her shares and own the business entirely, or just sell the business to a strategic buyer or private equity firm. Most of the time, the second option is more prudent because you may not have the capital or want to borrow substantial funds to buyout your partner.
- A Sudden Lifestyle Change Affects Your Business. CEOs and business owners need to understand that there should be a clear delineation between their personal lives and their business. If a sudden lifestyle change (like getting married, divorce, health issues, going back to school, or giving birth) becomes a conflict with your commitment to your business, then it's time to consider selling.
- You Struggle with Poor Business Performance. Running a struggling business can be very stressful and demotivating. If you notice that your business' performance doesn't improve, even after you have exerted a lot of effort and invested many resources to grow the business, then perhaps it's time to consider selling it to someone who has the skills and money to revive and grow it. Just don't expect to secure an optimal sale price or terms, but this is a common reason to sell.
- Your Business' Industry Is Thriving or You See a Decline Looming. If your business' industry is thriving, it's a good time to sell your business. A business in a growing industry will likely sell for more than if your business' industry is struggling. You can take this opportunity to sell your business while there are more acquirers interested in buying it at a good price. It's important to pay attention to industry trends, as it will benefit you when you decide to sell.
- You Have Health Issues or You are in Your Late Sixties or Older (Possibly with Previous Health Issues). If you think your business has cost you your health, then it's time to seriously consider selling it. Facing serious health issues is one of the most common reasons why some business owners choose to sell their business. After all, it's best to prioritize your health, and capitalize on today's lofty valuations. Most importantly, be prudent and don’t wait too long to sell. Selling when you are elderly or have health issues is extremely risky and can be far more difficult.
Bottom Line - When to Sell a Business. There will come a time when you will want or need to sell your company. The right time to sell a business is based on various reasons, such as economic conditions, industry trends, valuations, personal situations, and professional considerations, but most of all you want to sell when, 1) The economy is healthy, 2) Your business is healthy and sales are increasing, and 3) You, the CEO/business owner is healthy.
This is one of the most important decisions you may make in your life. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
This is one of the most important decisions you may make in your life. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Four Growth Strategies to Maximize Your Profits and Value
CEOs conduct strategy and planning to grow their business and increase sales and profits, as well as, the value of their businesses. There are several methods for implementing a growth strategy. Common growth strategies in business include, 1.) Market Expansion, 2.) Product Expansion, 3.) Diversification and 4.) Acquisition.
Below are four growth strategies that you can use in your planning to implement with your management team to accelerate growth, maximize profits and optimize the value of your business. The first three growth strategies focus on organic growth, while the last growth strategy focuses on acquisitions for growth.
Below are four growth strategies that you can use in your planning to implement with your management team to accelerate growth, maximize profits and optimize the value of your business. The first three growth strategies focus on organic growth, while the last growth strategy focuses on acquisitions for growth.
- Market Expansion Growth Strategy - A Market Expansion growth strategy involves selling your current products and services into new markets, either in new industries or new geographic markets - or both. There are several reasons why companies consider a Market Expansion strategy. First, the competition may dictate that there is little room for growth within the current market. If a business does not find new markets for its products, growth in sales and profits will be restricted - in fact, profits will tend to decline over time. A business may also use a Market Expansion strategy if it finds new uses for its current products and services.
- Product Expansion Growth Strategy - A business may also expand its product line or add new features to increase its sales and profits. When companies employ a Product Expansion strategy they continue selling within the existing target markets. A Product Expansion growth strategy often works well when market conditions change, such as competition enters the market, or technology starts to change. A business may also be forced to add new products as older ones become outdated or obsolete.
- Diversification Growth Strategy - Growth strategies in business also include Diversification, where a company will sell new products to new markets. This type of strategy can be more expensive and risky, and companies will need to plan carefully when using a Diversification growth strategy. Market research is essential because a company will need to determine if customers in the new market will potentially like, need and purchase the new products.
- Acquisition Growth Strategy - The above strategies focus on organic growth, and most CEOs and business owners focus solely on these strategies. Growth strategies in business can also include mergers and acquisitions. With an Acquisition growth strategy, a company purchases the Stock of another company, or purchases the Assets of another company without taking on the liabilities to expand and grow. A business may also use this type of strategy to expand its product line and enter new markets, as well as, acquire needed talent and deeper management or needed intellectual property.
An Acquisition growth strategy can also be risky, but not as risky as a Diversification strategy. One reason is that the products and market are already established in an operating company with an Acquisition strategy. A company must know exactly what it wants to achieve when using an Acquisition strategy, mainly because of the investment required to implement it.
CEO Advisor, Inc. specializes in advising on all aspects of growth for small and mid-size businesses. Our mission is to grow your business to the next level, as well as, advise you through the ultimate sale of your company.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
CEO Advisor, Inc. specializes in advising on all aspects of growth for small and mid-size businesses. Our mission is to grow your business to the next level, as well as, advise you through the ultimate sale of your company.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
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