Age and Health Sheer boredom Personal Liquidity. In many instances, almost all of the owner's personal wealth is tied up in the business. The prospect of a sale offers the first opportunity since the company was established to convert the holdings into cash, to diversify investments, and to enjoy the benefits of having built a successful business. Entrepreneurs have a recurring need for growth capital. The only thing more financially ravenous than a stagnant business is a growing business.
Greater revenues demand greater capital.
High growth companies often exceed their financial capabilities and commercial credit lines. For these companies, a sale can offer the expansion capital required to exploit growth opportunities. In such circumstances, the owner might retain a minority share of the business or a percentage of earnings for up to five years. Such arrangements usually assume the eventual departure of the seller. Although these arrangements involve immediate loss of control and the end of any managerial role within a relatively short period, owners frequently find them preferable to seeing the business wither for lack of capital.