When you started your business it’s likely that you didn’t anticipate it running out of steam. As a founder, it can be difficult to admit that your time as CEO of your business has reached the end of its journey. It’s a competitive economic environment so perhaps you’ve run out of cash or you haven’t been able to scale as you planned. Time to consider an exit strategy.
Simply closing the doors can feel like the death of a dream but there are other options. There’s every chance another business owner may find the acquisition of your company an opportunity too good to ignore.
Why would another entrepreneur purchase your business?
Your team
We all know that finding employees can be challenging and there’s a lot of time and effort involved. Acquiring a business with an established team and attractive culture can be enticing.
You have exciting tech or systems
Building tech or business systems from scratch can be expensive and time-consuming. If you’ve already done the groundwork another company can put this to good use.
Your existing customer base
Your business may already have some traction. Marketing to capture an audience can be more expensive than acquiring an established business.
Good PR
Acquisitions create a buzz. It’s a great opportunity to garner some publicity and attention.
What’s in it for you?
A job
As the founder of the company, there’s every chance the acquiring company is going to offer you a job. This will give you an opportunity to stay involved in the business or buy you time if you wish to transition out slowly.
Customer care
You may have forged customer relationships or feel a sense of obligation towards your customers. Acquisition will enable your customers to maintain access to your product or service.
An impressive CV
If you decide to move to the corporate world the successful sale of your business will look more impressive on your CV than an insolvency.
Preservation of relationships
If you plan to continue on your entrepreneurial journey it’s a good idea to keep investors happy. You may want to call on them down the track. A sale will mean you can repay some investor capital.
Ready to sell your business?
You’ll need to prepare your business for sale and make it attractive to prospective buyers. At BlueRock we can walk you through the steps and advise you on the acquisition process. We understand how the entrepreneurial mind works - talk to us about the next stage in your business journey.
