Here is an excerpt from an article on Entrepreneur.com entitled: Tips to Consider When You’re Ready to Sell: HARO founder Peter Shankman shares insight from the sale of his business, by Eileen P. Gunn.
“What advice do you have for entrepreneurs looking to sell in order for the companys to grow?
Ask yourself if selling the company is really what you want to do, and make sure you’re selling for the right reason. If you’re having a crappy day, that’s not a reason. If you wake up one morning and don’t love what you’re doing, that’s a reason. If you want to get your company to the next level and don’t have what it takes to do it on your own, that’s a reason.”
This is an interesting article. Read the article if you are thinking of selling out to a larger company in your industry or a related industry. Or if you are a tech-driven company. (Some of the comments about revenue multiples are completely unrealistic for most industries. In most industries, multiples of cash flow or EBITDA is a better indicator of market value.) If not, this excerpt will suffice. If, as an entrepreneur, you are burned out, overwhelmed or frustrated, you may need to bring in a strategic advisory board or build out your management team to allow you to focus (or re-focus) on the company and get more strategic input that keeps you thinking big. Or you may need to bring in outside investors or a partner to help you take the company to the next level. There are a number of ways to bring in the outside help you need to help your company grow. Getting bogged down in the details and feeling like you need to do everything yourself leads to dissatisfaction and burnout. If you decide these feelings are here to stay, that you do not love what you do anymore, then it is time to sell out before antipathy sets in and takes the company on a downward trend. I agree. If you like what you do but you want the company to get to the next level and don’t believe you can shepherd that growth – that training, a mentor, an advisory Board, or a supportive management team – can help you drive the growth, then it is time to sell. Know your limits and move on to the next good thing.