Essentially, the market potential is just not there. Serious competitive problems. The business is experiencing serious competitive problems. The market is saturated with similar ventures, and the cost of the product has become very competitive. There are just too many businesses chasing after the same consumer dollar.
Some businesses become technologically obsolete.
Sometimes the product can no longer compete technologically in the marketplace because of new inventions. Astute entrepreneurs may realize that they are losing their technological edge. They quickly place their business for sale before this situation becomes apparent to the general public. In acquiring any business with a technology base, take great care to assess what is happening to the technology in that industry. It is essential that you determine whether the business has the ability to compete in the new technological arena.