Selling Your Business during a Pandemic
With many people comparing Covid-19 to the global financial crisis of 2008, it’s no wonder some business owners are worried about selling their business during the pandemic.
However, the two situations are quite different, and you shouldn’t assume that your business won’t sell – or will fetch a lower price – because of Covid-19.
Clearly, market uncertainty can be an issue in some sectors, but many other businesses remain very sought-after. And even those more directly affected by the pandemic can sell – it just requires a different marketing strategy.
If you are considering selling your business, it’s for a particular reason. And that reason is generally retirement, health, burn-out, or changing direction. So, why should you put your plans on hold because of Covid-19?
If you are waiting for life to return to “normal”, you could be waiting a long time!
The question to ask yourself is this: Am I selling so that I can do something different with my life, or am I selling to make as much money as possible?
Whilst the pandemic has caused some uncertainty, we also have interest rates at a historic low. As a result, this is the perfect time for many buyers to acquire a business.
Equally, whilst the pandemic has caused job losses, many of those affected have substantial savings or redundancy packages and now wish to buy themselves a job.
Unlike the GFC, the current situation has generated a range of Government interventions and financial support. This has not only generated interest in buying businesses but also enabled many more businesses to remain viable.
The crucial point is how you prepare your business for sale. This is always a key factor and is now more important than ever.
There are buyers who will be looking for bargains, so you need to make your business as viable and attractive as possible to achieve the best price.
As the song goes, you need to ‘accentuate the positive’. That doesn’t mean covering up what isn’t working; it means making the most of what is.
For example, the switch to remote work and teleconferencing has resulted in unexpected efficiencies for many businesses.
Perhaps you have discovered a new niche market as a result of dealing with the pandemic, or you have streamlined your products or added new lines.
Many businesses have been forced to find new and innovative ways of communicating with and responding to their customers – another strong selling point.
And as for online and delivery businesses, well, they are booming!
Xcllusive Business Sales has methods in place that will help you package and market your business to attract buyers in the current climate – and get the right one across the line.