Buyout Sellout Exchange for small business

From Ranbaxy to Religare and Fortis Healthcare, Singh brothers were able to sell their family’s stake in the pharma business to build and focus on new business of their choice. Many next gen small business owners would love to have such option in their life.

There are many reasons for the small business owners to sellout their business.

Lack of succession:

Children who are well educated and working as professionals in big cities might not be willing to move back to towns to run a small business.

Lookout for new opportunities:

Next gen family members might not be interested in running the old business their parents had built, but willing to take risk and start new business of their choice.

Business Plan Failures:

Owners seeing the gaps in their business plan built on assumptions after the initial launch period and realizing the chance of business turning profitable is slim in the foreseeable future.

Competition from Big Business:

Big organized players coming near the small business stores might significantly affect their future growth.

Despite the number of reasons it is not easy for the small business owners to sellout and move on. So they are forced to run inefficient business without any passion or vision and losing their capital gradually. You could see many small medical shops, textiles, retail stores, hotels where there is very little growth yet the owners running it for years.

An online exchange to list small business interested in selling out would give them a great opportunity to exit losing businesses and start something new. These exchanges can offer professional services to value the small business and and ask the owners interested to sellout to file a detailed red herring prospectus. Such details can be shared with interested buyers at a fixed cost.

Will someone create such online exchange to provide an exit option for small business owners.

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  1. Venkatakrishnan says:

    Good thought! Not sure if the Indian market is mature for this. It would be great idea for the SME sector that probably cannot afford or are below the radar of most IBs!

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