Over the years, we’ve spoken with the owners of hundreds of vertical market software companies and one of the most important questions we ask is why? Why do they feel now is the right time to sell their business?
For some, the decision is based purely on financial reasons; for others, it comes down to lifestyle factors.
Using our experience, we have pulled together the most common reasons owners give us for selling.
Sometimes it’s as straightforward as an owner spending 2-4 decades of their life building and growing their business, eventually reaching a point where it’s time to rest. In the case that there isn’t someone suitable in the family to pass the business onto, the best option will be to sell up.
Retirement could be considered one of the easiest ways to part with a business. It gives the owners plenty of time to plan their exit strategy and achieve the maximum sale value.
Present owner has taken the business as far as they can
Sometimes, a business can hit a point where the owners feel that they can do no more with it. This could be because they’re not able to invest further, or simply that they’re not sure on the direction to move forward in.
It’s at this time where continued success might lie in the business becoming part of a bigger group who have extensive knowledge and resources at their disposal.
When welcomed into the Vesta Software Group, we give owners the opportunity to determine their futures. In this case, many are not ready to retire or part ways with their businesses, so instead, they choose to stay on in some capacity after it has been acquired. This could be as part of the group, helping to deliver ongoing success over time as Group Leaders or Portfolio Managers, or it could be remaining with their business itself to share in its continued growth down the line.
Running a business can be exhausting; owners regularly find they lack an effective work-life balance, which in turn can lead to lower drive or inspiration. After playing the entrepreneurial game for long enough, it can get to a stage where they decide to take their lives in a new direction.
By selling their business to a buyer who has the passion to sustain its success, owners can be assured that they’re leaving what they’ve built in safe hands.
Seeking a new challenge or change of scenery can be exciting and profitable, but it may be the case that a lot of attention needs to be focused on this for it to succeed. If the right opportunity presents itself, an owner may be motivated to sell their current business to ensure it is given the time and effort required to grow.
Capitalise on the market
There’s a saying “everything is for sale if the price is right”, and it’s certainly no different in the world of business. If market conditions are right and the business is performing above expectations, owners might just receive an offer they can’t refuse – even if they otherwise had no intention of selling.
Why might Vesta be the right home for your company?
Here at Vesta Software Group, we are a family of software companies made up of like-minded individuals who all share similar ethical and business standards. We have welcomed over 700 companies into the wider CSI family and have never sold an acquired business. Instead, we commit to operating and growing every company, exceeding their goals and meeting clients’ needs.
We encourage and support independence, but no one in the family is ever alone – all employees benefit from access to the wider group environment for career development, support with day-to-day operations and more.
We love getting to know dynamic, client-focused software companies. If you are looking for more than just a financial transaction to kickstart the next step in your company’s journey, please get in touch with our team today.