Contrary to popular belief, companies are not sold just because they are bankrupt or in trouble. There can be a number of different reasons that lead to selling the company, it should be perceived as tradable product, with value, as any other.
In the USA, more than 18% SME’s change hands annually with average selling prices above Us$210.000. In Ireland we estimate that less than 1% of all SME’s are traded annually.
Main reasons for trading SME’s:
It can be owner's personal reasons:
Or economic, strategic reasons: