If you can’t beat them, join them – at least, that’s a very simplified way of explaining mergers and acquisitions (M&A). It’s never an easy decision, but once you know you’re ready for the next big adventure of your life, it’s time to let go of the business and look forward to all the opportunities that await.
For businesses that have had a successful run, closing down your business and liquidating everything isn’t necessarily the best option. With an M&A plan, you can open up different possibilities beyond just having more time and wealth on your hands. Let’s go through five of some of the most common reasons why business owners ready to exit opt to pursue M&A.
Living the Lifestyle You Want
We often use our work as an excuse to why we never have enough time to enjoy the little things in life. Whether that’s time to focus on your health, working on a skill you’d like to develop, making it to important milestones for your family, and doing what you love. With an M&A, you could have the opportunity to do all these things – and more – because of all the time and resources that open up to you.
Getting an M&A for your business doesn’t automatically mean you get to live on a beach somewhere (though you could!). It means having the financial freedom and time that weren’t available to help you explore the lifestyle you want to live.
Explore Other Industries
There’s opportunity for your business to grow – just not at the rate you’d like. You might find that there are plenty of opportunities that you can tell could be a lucrative venture. However, these can be difficult to explore when your resources are tied down to your current business.
M&A frees you of the obligations of running a business and allows you to explore other investment opportunities. While some M&As prevent you from creating a competitor company after the sale, you can diversify your investments into other industries and sectors. If done correctly, you can see greater returns compared to the profits you would have made running your business.
Build New Interests and Opportunities
You worked hard to build your business into what it is today. But suddenly, you find yourself restless and itching to either move on to your next big business venture or even just retire and focus on yourself and your loved ones. Burnout is real, even for a business that you established yourself. If all efforts to avoid burnout have been tried and failed, you might want to sell your business to free up your time and resources to other outlets.
Selling your company to explore new opportunities is a much more effective and practical solution than sticking it out. If you find that you no longer have the same level of interest in your business or you’re barely motivated to focus on your company, it can negatively impact the business. This is why it’s much better to sell now rather than watch your success dip and make it harder to sell.
It’s Time for Retirement
The average American retires by the time they reach their mid-sixties. But, if you’re in a financially stable position to retire before then, there’s no hard rule that requires you to wait for your golden years. You dedicated your time and resources to your business, but now it’s your turn to focus on yourself.
Through M&A, you don’t have to close down your business to free up more time for yourself. Selling your business means the company continues to run while you benefit from the fruits of your labor. If you’re not set on full-time retirement, M&A can also provide you with the flexibility to continue to have a role in your company as a consultant.
Dynamic Market Is No Longer in Your Favor
When you started your business, you may have tapped into a relatively new niche or a market that wasn’t explored. This worked for a time, but now you find that the landscape of your market has changed. Your market may have become oversaturated with competitors, which come with new risks that weren’t there before.
Rather than bowing out of a dynamic market or waiting for your competitors to outshine you, you can opt to sell your business. Having your business merged with other companies in your niche can ensure your brand stays relevant rather than letting it fizzle out.
Leave Your Legacy in the Hands of Align BA
There are a number of reasons why business owners proceed with mergers and acquisitions rather than closing down their businesses. Though it may be time to sell your company, you should know how much your business is worth to avoid any lowball offers when you’re selling your business at its peak.
With Align BA’s M&A consulting services, you have a team that can advise you on the best outcome that benefits you, your business, and those that matter to you. You’ve done your part in building a successful business. Now, see the profits that await as we help you maximize your earnings and provide a sound exit plan as you transition out of your company.
Contact Align BA today to request a meeting with our team.