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Why Would You Sell a Business?

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Why Would You Sell a Business?


As an entrepreneur and business owner, there comes a time when you feel the need to sell the business you have been building all these years; years of unwavering dedication, hard work, and sacrifice to get your business where it is today. Perhaps it’s time to move on to something else. If you are thinking of selling your business, it can certainly pay off in a big way. According to A Neumann & Associates, LLC, business brokers help their clients sell their businesses by determining the market value of their company and finding qualified buyers who have the capital to make a deal. Here are five reasons why a business owner would sell their business and how you may fit in one or more of these categories.

Risk Assessment too High

Maybe your risk assessment is too high, and therefore, continuing to run your business is just too unpredictable. This is most likely influenced by dwindling sales figures, or you just barely break even each month and want the weight off your shoulders. You probably felt the last couple of years was like hanging on by a thread, and you may be uncertain how long business operations can hold together. This is the perfect opportunity to move on because the longer you hold on, the riskier it can get, and you don’t want the volatility of running a business to affect your financial goals. You can transfer the risk to a willing buyer who can take control of the business and maybe turn it around.

Preparing for Retirement

Wanting to retire is a reason to sell your business that you’ve spent decades building, growing, and nurturing. By now, your business has generated plenty of revenue over its years of operation, so you can cash out and use that hard-earned money for your retirement. Selling your business can provide the retirement plan you’ve always dreamed of, and you can use that money to fuel a lavish and laid-back lifestyle.

Sudden Life Changes

Unexpected events can happen that can affect an entire business, such as economic hardships and abrupt market changes. Or perhaps, changes in your personal life are urging you to sell your business. Maybe your health took a turn for the worst and is affecting your productivity and performance, in which case, turning over the keys to your business to someone else may be the right option.

Transferring the Business to Someone more Capable

When it’s time to hand over the keys to your business to someone else, you want a qualified buyer who has the capital and industry knowledge to keep the business alive. If your business is doing well, profits are growing, and sales look stable, the likelihood that your business will sell exponentially increases. A business is most valuable when its profits are increasing year by year, which is very appealing for potential buyers. In addition, if the economy is doing well and the buyers’ market is looking favorable, you can get offered prices that are too enticing to refuse. Buyers can be compelled to go on bidding wars for your business, and you can evaluate which bidder is the most appealing to you.

The Need for Liquid Cash

Perhaps you need cash right away, and you don’t necessarily want to operate the business anymore; that’s okay. There are many reasons to liquidate your business; maybe you need cash to travel around the world, devote time to a new hobby, start a new company, pay off medical bills, or another scenario. Whichever the reason, selling your business can provide you with liquid capital to accomplish the items on your to-do list. In some rare instances, a potential buyer may like a certain aspect of your business and may offer you an amount that is many times more than its base market value. It can definitely happen, and if it does, you will be glad you sold your business. After all, with all that liquid cash you will be sitting on, paying off your mortgage would be easier than ever. Perhaps moving to a new location is something you want to do, or even become an investor and fund startups.



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B2B customer journeys that begin at review sites are significantly shorter

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B2B customer journeys that begin at review sites are significantly shorter


The B2B customer journey can be a long one, especially when the purchase of expensive software subscriptions is under consideration.

“The average B2B customer journey takes 192 days from anonymous first touch to won,” according to Dreamdata in their 2022 B2B Go-to-Market Benchmarks — a statistic described by co-founder and CMO Steffen Hedebrandt as “alarming.”

But the report also indicates that this journey can be significantly sped up — by as much as 63% — if accounts begin their research at software review sites, gathering information and opinions from their peers. Journeys that originate at a review site often lead to deals of higher value too.

Fragmented data on the customer journey. Dreamdata is a B2B go-to-market platform. In any B2B company, explained Hedebrandt, there are typically 10 or even 20 data silos that contain fragments of the customer journey. Website visits, white paper downloads, social media interactions, webinar or meeting attendance, demos, and of course intent data from review site visits — this data doesn’t typically sit in one place within an organization.

“We built an account-based data model because we believe that there’s such a thing as an account journey and not an individual journey,” said Hedebrandt. “So if there are two, three or five people representing an account, which is typically what you see in B2B, all of these touches get mapped into the same timeline.”

Among those many touches is the intent data sourced from software review site G2. Dreamdata has an integration with G2 and a G2 dashboard allowing visualization of G2-generated intent data. This includes filtering prospects who are early in their journey, who have not yet discovered the customer’s product, or who have discovered it but are still searching. This creates a basis for attributing pipelines, conversions and revenue to the activity.

“Strategically, our ideal customer profile is a B2B software-as-a-service company,” said Hedenbrandt. “B2B SaaS companies are particularly ripe for understanding this digital customer journey; their main investment is in digital marketing, they have a salesforce that use software tools to do this inside sales model; and they also deliver their product digitally as well.” What’s more, it takes twice as long to close SaaS deal as it does to close deals with B2B commercial and professional services companies.

Read next: A look at the tech review space

The Benchmarks findings. The conclusions of the 2022 Benchmarks report is based on aggregated, anonymized data from more than 400 Dreamdata user accounts. Focusing on first-touch attribution (from their multi-touch model), Dreamdata found that customer journeys where a review site is the first touch are 63% shorter than the average. In contrast, where the first touch channel is social, the journey is much longer than average (217%); it’s the same when paid media is the first touch (155%).

As the Benchmarks report suggests, this may well mean that social is targeting prospects that are just not in-market. It makes sense that activity on a review site is a better predictor of intent.

Hedenbrandt underlines the importance of treating the specific figures with caution. “It’s not complete science what we’ve done,” he admits, “but it’s real data from 400 accounts, so it’s not going to be completely off. You can only spend your time once, and at least from what we can see here it’s better to spend your time collecting reviews than writing another Facebook update.”

While Dreamdata highlights use of G2, Hedenbrandt readily concedes that competitor software review sites might reasonably be expected to show similar effects. “Definitely I would expect it to be similar.”

Why we care. It’s not news that B2B buyers researching software purchases use review sites and that those sites gather and trade in the intent data generated. Software vendors encourage users to post reviews. There has been a general assumption that a large number of hopefully positive reviews is a good thing to have.


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What Dreamdata’s findings indicate is that the effect of review sites on the buyer journey — especially as the first-touch channel — can be quantified and a value placed on it. “None of us questioned the value of reviews, but during this process you can actually map it into a customer journey where you can see the journey started from G2, then flowed into sales meetings, website visits, ads, etc. Then we can also join the deal value to the intent that started from G2.”

Likely, this is also another example of B2B learning from B2C. People looking at high consideration B2C purchases are now accustomed to seeking advice both from friends and from online reviews. The same goes for SaaS purchases, Hedenbrandt suggests: “More people are turning to sites like G2 to understand whether this is a trustworthy vendor or not. The more expensive it is, the more validation you want to see.”


About The Author

Kim Davis is the Editorial Director of MarTech. Born in London, but a New Yorker for over two decades, Kim started covering enterprise software ten years ago. His experience encompasses SaaS for the enterprise, digital- ad data-driven urban planning, and applications of SaaS, digital technology, and data in the marketing space.

He first wrote about marketing technology as editor of Haymarket’s The Hub, a dedicated marketing tech website, which subsequently became a channel on the established direct marketing brand DMN. Kim joined DMN proper in 2016, as a senior editor, becoming Executive Editor, then Editor-in-Chief a position he held until January 2020.

Prior to working in tech journalism, Kim was Associate Editor at a New York Times hyper-local news site, The Local: East Village, and has previously worked as an editor of an academic publication, and as a music journalist. He has written hundreds of New York restaurant reviews for a personal blog, and has been an occasional guest contributor to Eater.



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Work smarter, not harder, to give customers what they want

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Work smarter, not harder, to give customers what they want


Personalizing your marketing campaigns for one customer is easy, but how about one hundred or thousands of customers across multiple marketing channels?

Work smarter, not harder, by using artificial intelligence (AI) as part of your martech stack and giving your customers the unique experiences they crave.

Register today for “Use Data to Create Next-Level Customer Experiences at Scale,” presented by MoEngage.


About The Author

Cynthia Ramsaran is director of custom content at Third Door Media, publishers of Search Engine Land and MarTech. A multi-channel storyteller with over two decades of editorial/content marketing experience, Cynthia’s expertise spans the marketing, technology, finance, manufacturing and gaming industries.



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How Video Can Humanize Your Brand in 2022 & Other Insights from Wistia’s CEO

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How Video Can Humanize Your Brand in 2022 & Other Insights from Wistia's CEO


One of the main things we’ve learned during the COVID-19 pandemic in regards to how people consume content is that they want to be entertained in different ways.

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