The 7 D's of Selling: From Divorce to Declining Business

Whenever a business hits the market, it's inevitable - curious minds want to know, "Why on Earth are they selling?" As a business broker and seasoned observer of the human condition, I've seen it all. So, let me introduce you to the seven D's, the often-hilarious, sometimes-tragic reasons that sellers sell.

1. Dollars (and Lack Thereof)

First off, let's talk about the cold, hard cash. Or, more precisely, the lack of it. If the business isn't raking in the big bucks like it used to, the owner might decide to sell. Nobody likes a lean Christmas, especially if Santa’s bag is filled with unpaid bills and maxed-out credit cards. Selling, in this case, is more about stopping the financial bleeding than turning a profit.

2. Divorce

Next up is divorce, the sworn enemy of marital bliss and joint assets alike. When "for better or worse" turns into "for worse and even worse," a business might end up being the sacrificial lamb. With each party shouting, "I want half!" the business often ends up being sold to keep the peace (and pay the lawyers).

3. Death

As the saying goes, there are two certainties in life: death and taxes. Sometimes, unfortunately, the first prompts the sale of a business. It's a sad scenario, but a reality in the world of commerce. While it's a grim reason, it's crucial for businesses to have a succession plan. If not, they risk leaving a trail of question marks and possible economic upheaval in their wake.

4. Disagreements

For multi-owner businesses, disagreements can often lead to a sale. Imagine running a three-legged race with someone determined to go in the opposite direction. Not a pretty picture, is it? Disagreements about management, vision, or even office coffee can escalate to the point where selling is the best solution for everyone involved (and for the sanity of employees caught in the crossfire).

5. Declining Business

If business is on the decline, the owner might choose to sell before things get worse. It's like seeing a horde of zombies on the horizon and deciding it's a great time for a vacation. After all, it's better to jump ship before it sinks, right?

6. Disease

Unfortunately, personal or family illness is a common reason for selling. The upside? This type of sale often results in the entire community rallying to support the owner. It's a silver lining on a very dark cloud, proving that business transactions can sometimes highlight the best in human nature.

7. Dreams (Chasing New Ones)

Lastly, let's end on a more upbeat note. Sometimes, entrepreneurs sell because they're off to chase new dreams. Maybe they want to travel the world, start a llama farm, or maybe they’ve always wanted to try their hands at professional competitive eating. Whatever the reason, selling allows them to fund their next adventure, proving that the entrepreneurial spirit never truly rests.

So there you have it, the seven D's of selling. A blend of life's tragedies and triumphs, each one providing a compelling reason to enter the world of selling and buying businesses. Remember, whatever your reason for selling, the aim is to ensure a seamless transition that benefits both buyer and seller. Happy selling (or buying)!