• NOVUS Business Brokers

Sell My Business or Keep My Business?

Updated: Aug 28, 2019

Selling your business is no doubt one of the biggest life choices you will have to make. It's not uncommon for sellers to think about keeping their business instead of selling it. Do I Keep My Business?


Financially if the owner is happy to run and develop their business and the performance of the business will remain stable or improve, then that may indicate that keeping the business is the best choice.

The argument in this scenario is founded in the risk analysis. A purchase of a private business is a fairly risky type of investment; it could be full of uncertainties and revenues are not often supported by long-term contracts.


Thanks to the digital age competitors are ever more visible to customers and employees are ever more mobile thanks to online job boards like LinkedIn etc.

To prevent these risks buyers are expected to achieve yields on their investments of between 20 - 40%, which means the return of investment can be achieved between 3 - 5 years.


Assuming the seller might make similar levels of profit if they don’t sell will mean they have a business as an asset, at the end of that time frame. It’s logic that says you are better off keeping your business.

Do I Sell My Business?


If you are not in the market to sell your business for financial reasons, why are people still selling?


Through our experience of dealing with many sellers in many different scenarios we have listed together common reasons ‘why’ business owners wish to sell:-

  • As a business owner, you may wish to do something different. You may want to profit from the value that has been created in the business to date. The proceeds could be used to invest in a new project or to give you the financial freedom to recover your work/life balance that has been neglected.

  • Industry threats could mean the business is in a better position to survive under the backing of a larger owner.

  • Health reasons or changes in your family circumstances means the business is not receiving the full attention it needs. This may cause the business to deteriorate in the short to medium term.

  • The business has expanded to a level that makes it impossible for the owner to manage everything. The owner may struggle to delegate and may also struggle in making the required investment in resources to take it to the next level.


Have you lost the buzz? It’s just not fun anymore? Issues relating to people, legislation, and process have now largely replaced the creative input that characterised the early years of the business.


If you feel you can relate to the points above, a post-sale for many businesses may actually give it a new lease of life. This can be sparked by the injection of new blood, new capital and new ideas, which in turn will generate renewed enthusiasm from the existing employees.


CLICK HERE for information about how we can help you achieve a successful sale.

Book your FREE business valuation today!





#bloggingtips #WixBlog

NOVUS Business Brokers

Pindar Rd 
Hoddesdon 
Broxbourne

England 
EN11 0FJ

  • Facebook - White Circle
  • Twitter - White Circle

© Copyright 2020, all rights reserved | NOVUS Business Brokers Pindar Road, Hoddesdon, Broxbourne, EN11 0FJ | Registered Company Number 12139115 | Privacy Policy | Copyright.