| It's Hard to Be a Young Entrepreneur: How to Sell While You are Young |
 Some times it's not easy being young and successful. Especially when you are looking to sell your young, successful company that you have been building for the last several years. Young entrepreneurs often have a challenging time explaining why they want to sell their company. After-all, why would anyone want to sell while their company is doing well and they have years ahead of them?The Problem: Can it Really Be as Good as Billed? This is a problem that we see time and again. We have had quite a number of young, successful clients that are looking to cash out of their business. Invariably one of the biggest sticking points is "if this company is so great, why are they selling?" Why Young Owners Might Sell Young business owners typically have some valid reasons for wanting to sell. They might include:
Another factor that many fail to consider is that at some point, a business might grow beyond the founders ability to manage and grow it. Once the company reaches this precipice, it might be time to bring in professional management, seek expansion capital, and take some equity off the table at the same time. (We often see this in a recap scenario. Not sure what a recap is? Contact Clear Rock). Our Recommendation We always suggest to our clients to just be honest. At the end of the day, the biggest imperative when discussing your reasons for selling is to be honest and forthright. When your reasoning is unclear, murky, or evasive, a buyer or investor will have questions or concerns about your motives. But when you are straight forward and passionate about what you want to do, it becomes an easy sell to a buyer. For the "old-timer" that is ready to retire has a clear reason to sell. The younger owner needs to be able to enunciate their reason and bring that same clarity to shine on their own situation. Contact Dan Doran at Clear Rock to discuss your own special circumstances. Dan can be reached at 201-433-0677 ext. 115. |
