The COVID-19 pandemic has negatively affected millions of people and businesses in different ways.
As a business owner, there’s no doubt you’re feeling the pain. With shutdowns and stay-home orders, your revenues are certainly on a slump. It’s also possible that your business is one of the few that are thriving during this period.
Regardless of your specific situation, you might be looking to sell or even buy a business. But how does buying or selling a business work during this period? Are there things that have changed?
In this article, we’re digging deeper into this issue, telling you what you need to do before you step into this market.
Come with us to learn about buying or selling a company during a health crisis!
The Demand Is Still There
There’s no denying that the coronavirus has negatively affected the demand for various products and services. The same rings true in the industry of buying and selling businesses.
However, this isn’t to say the industry is dead. The demand for businesses is still there. There are thousands of entrepreneurs still looking to snap up businesses in various industries.
In fact, it’s possible that the demand has gone up. Since many businesses are on the verge of collapse, moneyed buyers are looking to buy some of these businesses from distressed business owners.
So, if you’re looking to sell your business, don’t shy away from putting it on the market thinking you won’t attract any prospective buyers.
Are You a Seller in Distress?
The pandemic is ravaging so many small businesses. If your business is unable to operate, you’ve been robbed of your income. Your business debts are probably piling. Perhaps you and some of your employees have contracted the virus and fallen very ill.
You might be looking for a quick exit. This means selling the business.
If you’re a seller in distress, you’re probably thinking of offloading the business at a throwaway price. Don’t!
Just because your business has been affected doesn’t mean it’s lost so much market value. Don’t be so quick to undervalue it so you can find a buyer fast. Get a valuer to calculate its present market cap and put it on the market at that valuation. You’ll be surprised to get offers that match the valuation!
Use a Business Broker
It’s possible to sell or buy a business without the help of a business broker. You’ll save money because you won’t pay out a commission or origination fee.
However, it’s always advisable to engage the services of a broker. And now that we’re in the middle of a pandemic where unnecessary movement is restricted or not recommended, it’s best to work with a business broker.
If you’re looking to buy, this professional will hunt for the best deals and initiate the transaction. You will need to do some further research to learn more about deal origination in a COVID world.
If you’re looking to sell, your broker will find buyers, ensuring the deal closes at the right price.
In short, you stand to gain, not lose, when you hire a business broker.
Buying or Selling a Business During COVID Made Easy
Even pre-COVID, buying or selling a business wasn’t a light task. This pandemic, though, has made an already hard task harder. The good news is you can pull it off without breaking too much sweat. Just put the information in this guide to use.
All the best and keep reading our blog for more tips and insights. At Bootstrap Business, we're all about building your biz bigger and better... even if you plan on selling it!
