It's a question every business buyer faces from friends and family: "If the business is doing so well, why would they sell it?"
The assumption is that owners only sell failing businesses.
The reality is far more interesting – successful businesses change hands every day for perfectly logical reasons.
The Liquidity Puzzle
Here's a surprising statistic: 67% of small business owners have over 75% of their net worth tied up in their business.
This creates what financial advisors call "the millionaire's dilemma" – being wealthy on paper but cash-poor in practice.
Consider this common scenario: A 60-year-old business owner has built a company worth several million dollars.
The business is thriving, but they can't easily access that wealth without selling at least a portion of the business.
A typical solution often looks like this:
-
Sell 80% to a qualified buyer
-
Retain 20% ownership
-
Stay on as General Manager with a salary
-
Receive a substantial sum to invest in retirement planning
-
Gradually transition out while training their successor
This creates a win-win situation where the owner gains financial freedom while ensuring their legacy continues under new ownership.
Beyond Liquidity: Why Successful Owners Choose to Sell
1. Retirement Planning
Studies show the average business owner works 50+ hours per week well into their 60s – that's 40,000 more hours than their employed peers.
By their mid-50s, many successful owners are ready to convert their life's work into retirement security.
2. Geographic Relocation
In 2023, 23% of business sales were triggered by owners relocating to different states.
While technology enables remote work for many professions, running a local business from across the country rarely proves practical.
3. Serial Entrepreneurship
An interesting trend: 47% of successful business sellers start another company within two years.
Some owners excel at building and scaling businesses but find more satisfaction in new ventures than long-term operations.
4. Family Priorities
Recent surveys reveal that 82% of business owners have missed significant family events due to work commitments.
This often leads successful owners to reassess their priorities, especially as children grow older or health considerations arise.
5. Diversification
Financial experts recommend having no more than 40% of net worth in any single asset. Smart business owners often sell to diversify into:
-
Real estate investments
-
Index funds
-
Bonds
-
Other business ventures
-
Retirement accounts
6. Personal Goals
Common post-sale aspirations include:
-
Property investment
-
Extended travel
-
Philanthropic work
-
Further education
-
New business ventures in different industries
What This Means for Buyers
Understanding these motivations helps buyers in several ways:
-
Identify genuine opportunities
-
Navigate negotiations more effectively
-
Structure deals that benefit both parties
-
Build confidence in the purchase decision
The Bottom Line
When someone questions why a successful business is for sale, the answer is often more straightforward than they might expect.
Smart owners frequently sell at the peak of success rather than waiting for decline.
This benefits both parties – sellers can maximize their exit value while buyers acquire a proven business at its best.
A final notable statistic: Businesses sold at their performance peak are 3.5 times more likely to succeed under new ownership compared to those sold during decline.
This makes buying a successful business from a seller with clear, logical motivations one of the smartest paths to business ownership.
Ready to Find Your Opportunity?
Now that you understand why successful businesses come to market, you're better equipped to evaluate opportunities and have those important conversations with friends and family.
Ready to explore available businesses? Browse our current listings of successful businesses for sale.