COVID-19. A pandemic that became a daily topic since early 2020 has rocked the world. Now, in 2021, we are still under the firm grasp of COVID but what does that mean for our business?
The 2008 Global Financial Crisis saw many businesses ‘adapt or die’ and our current recession is no different. Businesses have been faced with hard decisions and quick changes in direction in order to survive in the current pandemic climate.
But what does this mean if you were hoping to sell in 20/21? Being realistic, we know that the world will continue to feel the effects of COVID-19 in the years to come, so what does this mean if your succession plan was coming into effect within the next 3 years? What if you were hoping to retire?
But it’s not all doom and gloom. Although you may feel that selling a business or an acquisition in this current market is far fetched or not attractive, this may not be the case. Your business could be the diversification another is searching for, it could be an opportunity for a “bolt on” to another business in your industry, or it could be an opportunity for an individual to start their own journey and to step in with a fresh mindset and make the changes you feel are difficult to make with your long history in the business. Whatever the reason, there are always people who see the glass half full, instead of half empty. Indeed, we have seen evidence that some businesses have bounced back to pre-COVID levels and are performing strongly again. As an example, we listed a small manufacturing business in October and received 36 enquiries, with 4 offers, within 3 weeks. We then had 3 qualified bidders and the business settled in February. Bottom line, if the business is performing well and is sustainable there is a healthy appetite with Buyers.
All businesses follow a lifecycle. Now this lifecycle differs between each business and the industry in which it operates, however, business buyers in unprecedented times are commonly those in the growth phase, searching for ways to improve sales, increase revenue and find that ‘secret sauce’ to profitability. For this reason, consider broadening your horizons when looking for buyers for your business. What industries are like-minded or complementary? What businesses could gain something from the acquisition of yours? Buying and selling during a recession require out of the box thinking – which lucky for you, is something we specialise at here at Core Business Brokers. Our job is to provide you with an many options as possible to achieve the best possible outcome for you.
Thinking about selling your business in 2021 and want a clear indication of the market? Considering retirement and want to know your options? Or are you looking for that secret sauce and hoping to purchase a business this year? No matter what the driving force behind your decisions, contact Core Business Brokers today, on (02) 9413 2977, or email Roy on [email protected] and we’ll get brainstorming side by side. With our years of knowledge and expertise, you’re in safe hands.