Our corporate attorneys believe in understanding seller motivation and a seller’s reasons for selling a business. By understanding seller motivation we are able to help find the best fit between the client and a prospective buyer. In some situations, clients are motivated by financial gain and the desire or need for liquidity. In these cases, the search to find a type of buyer hinges on the buyer’s ability to offer a highest price in cash. In other situations, however, clients may be motivated to sell a business because they wish to retire or do something new and pursue other interests. In these scenarios, clients may be retiring, dealing with health issues, involved in disputes among the other owners, or lacking a successor. These clients may not be motivated as much by the selling price than by the timing of the sale and the prospect of being relieved from the business’s responsibilities.
Other times, clients may decide to sell their businesses because they are looking for additional resources to grow and remain competitive. Additional resources could be capital, professional management, and more advanced technology. This may lead a client to sell a business to a strategic buyer who has the resources and familiarity with the business and industry.