Selling your business is a big decision. One that's driven by different motivations, each with its own valuation.

There are 3 main situations behind most successful sales: rescue, retirement and wealth acceleration. There's a 4th situation too - a kind of 'bonus' opportunity.

I'll cover all 4 situations, starting here with the first. I'll cover the other 3 reasons in the next editions in this series.

For rescue or escape

A good business can get into trouble. An owner with energy and commitment to trade on can win, but sometimes it's time to withdraw. In that situation, selling may seem out of the question. Who would buy a business in distress? And is it even worth the effort?

It may be surprising, but distressed businesses are very attractive to certain buyers. Why? Because in the right hands, they can be turned around.

Trading situation

Even multinational plcs can collapse. Even with strong resources and markets, bad decisions get made. Trading distress is caused by leadership & management rather than market weaknesses.

Given this can happen to global companies with huge financial resources, it's no surprise it happens with small businesses too.

And, while devastating for the business owner, it's not necessarily the end of the business. New owners bring different experiences and perspectives.

Those new owners have a vested interest. Which is why selling to them may be an option.

Any business can find itself in a distressed state. After all, rewards come with the risk of things not going to plan.

Yet, when an owner has decided to quit, there's an option available that may give them more than they expected.