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I put that question to the head of mid-market M&A for a Toronto-based investment bank specializing in selling companies worth between $10-million and $100-million.

“Typically, a client calls us because they have been approached out of the blue by a buyer,” said my banker friend, who requested anonymity.

He explained that an unsolicited advance causes a business owner to start thinking about what the business might be worth.

And the second most common trigger? “It’s typically a health scare,” he said. “The owner, a close friend or spouse has a health issue, which causes them to reflect on how short life really is.”

What I found interesting was that in both cases (health scare or unsolicited offer), the trigger was externally generated instead of a business owner taking a proactive approach to exit planning. I wrote about the consequences in my Globe & Mail column this week.

Book launch party invitation…

Books for Business in Toronto is hosting a book launch party for Built To Sell: Turn Your Business Into One You Can Sell coming up on Wednesday February 24, 5pm-7pm. Please email Rachel@BuiltToSell.com for the details and to RSVP. Hope you can be there.