I can; it's if you want to cash out now instead of accumulate money over the next twenty years. Plenty of people who do that trick (start a company, cash out) a few times. They call themselves "serial entrepreneurs", which either means the above, or they've left behind a long string of failed businesses.
> You've got early employees, investors, or a co-founder who wants to leave or cash out. You want to swap them for a friendly new face who can add value and help you grow the business.
This is common in professional groups (like law firms or medical practices) when a partner is looking to retire.
Unless you plan to a) run the business until it fails, or b) pass it to your offspring, you're going to sell at some point, right? Given that, it makes sense to give at least some thought to what that point might look like before you get there.
Selling out in other industries is looked down upon (eg former indie musician selling out for a mainstream record contract), but business is, well, business. Better to be honest with yourself that your heart's no longer in it (if it's not), and sell to someone who is.
> Selling out in other industries is looked down upon
That is certainly true. When people have a ton of money and sell out for even more money, that's always somewhat looked down upon I guess? Either its Joe Rogan or Notch, it almost seems sad to see people want to get richer when they're already absurdly rich.
The strangest thing about wealth (or power) is that once you get it; you seem to loose control completely. From that point on; all you want is even more money or power.
There are probably many examples of people who managed to give up power or money, but the majority seem to want hang onto it...
True; but from what I've seen it seems most people who start businesses have a very hard time letting them go, even when they are doing badly; but I guess there are circumstances where it makes sense to sell out.
I just cannot imagine selling my business if everything was pointing upwards like that.. but people are different I guess