Tag Archives: covid19

buying and selling a business during a covid-19 recession

Buying and selling during a recession

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.

covid-19 small business closure

SUPPORTING SMALL BUSINESS DURING THE COVID-19 PANDEMIC

It’s no surprise that the coronavirus has impacted us all, in various ways. Whether you’re a business owner, an employee or someone looking for work, you’ve no doubt encountered many speed bumps so far this year, with potentially more to come.

The sad truth is that without our support, small Australian businesses won’t see the other side of this restriction period – with many small businesses having to close under the pandemic pressure. So, what can we do to lend a hand and keep the small businesses we know and love afloat? Here are some ideas of ways we can stimulate their earnings and keep their heads above water.

  1. Buy a gift voucher
    If their products/services are something you can see yourself or a friend or family member utilising in the future, support them now by buying a gift voucher or two. The instant purchase may allow them to make rental payments or keep staff employed.
  2. Write them a good review
    Google reviews are delayed during this time, but you are still able to write them. So show your favourite locals some love on Google and Facebook. Customers count on reviews to make decisions, so your positive review could help drive new customers their way.
  3. Share their profiles on your social media accounts
    Whether you are an Instagram influencer or have 10 friends, think of the positive result of sharing your favourite local businesses with your social media circles. Post, tag, story and share. The more people that visit, the longer your local can survive!
  4. Contact them and see what different products/services they may be offering
    Many businesses have adapted during this time, offering different services or products to stay in business and help their community. Some breweries have begun manufacturing hand sanitiser, cleaners may offer a discounted ‘covid clean’ for businesses, your favourite coffee shop may now deliver for an additional fee! Whatever it is, learn about the changes they’ve made and see if you can utilise them.
  5. Utilise their services more often than normal
    Before covid-19, you may have decided that ‘eating out’ was a monthly treat. But if you are financially able, why not make it a fortnightly or weekly treat for the coming months. Those few extra visits could make all the difference to a small business.
  6. Tip where you are able
    Australia does not have a strong tipping culture, due to our minimum wage being substantially higher than countries such as the United States or United Kingdom. However, if your wallet allows, consider tipping those who are keeping a positive attitude during this unsettling time. It may not be much, but it could really help struggling businesses/employees.
  7. Offer your expertise to lend a hand
    If you aren’t able to offer financial assistance, think of ways you can contribute with your skills. Marketing experience could help small businesses advertise their new line of products or services; bookkeepers could lend a hand with organising finances. Why not offer to help in any way you can? There’s nothing stronger than the Australian spirit when the going gets tough.
  8. Be understanding
    We live in an ‘instant’ society where things are bought and returned faster than you can U-turn back to the shops. If your service was cancelled due to the pandemic and you are in a financial position that isn’t relying on the refund, consider gifting it to the small business in need. We’re all doing it tough right now, so try keeping an open mind and adopting a team mindset. Not only will it help small businesses, it will boost morale and community spirit.

If you are hoping to sell or buy a business in 2020, contact Core Business Brokers on (02) 9413 2977, or email Roy on [email protected]. Consistently watching business trends and market fluctuations during this pandemic, we can chat you through your options and guide you on your journey.