Question

In: Operations Management

List five common owner’s motives for selling a business.Explain these motives using a real life example....

  1. List five common owner’s motives for selling a business.Explain these motives using a real life example. [20]

Solutions

Expert Solution

There are many reasons why a business owner may choose to sell their business, ranging from not making enough money to health problems.

Explanation:

These are five common reasons why business owners may choose to sell their business:

  1. Retirement or death: This is the most common reason for selling a business. If the business owner retires or passes away and no one in their family is interested in taking over the business, they'll typically decide to sell it.
  2. Not making enough money: A business that's struggling to become profitable can cause a lot of stress for the business owner, although unprofitable business tend to be harder to sell.
  3. Health problems: This is especially common with older business owners who may be dealing with health problems related to aging, where they realize they need to slow down a bit and not work so hard anymore.
  4. Burnout: Owning a business can be very intense and stressful, so it's not uncommon for business owners to sell their business due to feeling burnt out.
  5. Problems with a business partner: Having problems with a business partner can bring on a lot of additional challenges, so this is another common reason for selling a business.

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