Many business owners are cautious about selling their business during the ongoing global pandemic. With lockdowns and restrictions changing the way businesses operate (with many not operating at all!), it can be a difficult time to sell depending on your industry.
For some industries, the business sale process is seamless, however, others have needed to adapt to achieve business sale success during Covid-19. Here at Core Business Brokers, we’ve recently settled a business that did just that. We’d like to share their (and our) story with you.
About the business
This business is an online e-commerce business based in Sydney, specialising in the sale of hardware products. Annual sales were circa $1M and growing. The business was listed for sale in February 2021, and we received over 35 enquiries within the following 2 months. Although based in Sydney, being an online business, it could easily be relocated to any state. The business was an attractive opportunity to those interested in online sales, with excellent systems and sophisticated software in place, as well as being a 5-day Monday to Friday operation, ensuring a healthy work-life balance.
How the sale transpired
The interested (and suitably qualified) buyer was based in Melbourne, and with the business in question being based in Sydney – the plan was that the buyer would travel to Sydney 10 days prior to settlement, for hands-on product and systems training to allow for a seamless transition of ownership.
However, when Sydney went into strict lockdown, this arrangement became impossible. With both Seller and Buyer keen to proceed, as the Broker we needed to be creative and to find a way to overcome this impediment. Plans needed to change and both parties agreed to adapt to allow the business sale to proceed, by agreeing to conduct online training sessions each evening for 2 weeks via Zoom. During this time, a bond was formed between the parties– building a level of goodwill and trust between them.
By the end of the 2-week period, the online training proved a success, and with determination and out-of-the-box thinking, settlement for the business sale was successfully concluded despite Covid-19 restrictions in place during the lockdown. The Seller then shipped all the stock to the Buyer and agreed to assist via telephone to ensure any hiccups were immediately addressed. Happy Seller, happy Buyer and happy Broker!
If you’re thinking about selling your business, contact Core Business Brokers today. Our experienced team have facilitated business sales and guided owners throughout their business sale journeys for many years. We’ve witnessed the effects covid-19 has on Australian businesses and will offer honest and professional advice when it comes to buying or purchasing a business in this pandemic era. Have your questions answered by giving us a call on (02) 9413 2977, or email Roy directly at [email protected].