Why you should consider selling your business right now!
Updated: 5 days ago
Most people's gut instinct would be to forget all about selling their business in the current environment. But you also need to consider when you might be able to sell your business in the future. How long can you wait? What personal issues might arise that could require you to sell your business quickly?
We're in exceptional circumstances, you might have to wait another year or two years or more? Or might you be forced into just shutting the doors and walking away at some stage?
There are powerful reasons why you should consider putting your business on the market. They include:
Business buyers are still active. Some might be bargain hunting but still able to offer you an acceptable price. Some will be looking for strategic acquisitions. Other potential buyers will be wanting to move from traditional investment channels and acquire businesses directly. You can also expect a significant increase in employees (and sadly ex-employees) looking to secure their future through acquiring their own business.
UPDATE: AnyBusiness - one of Australia's leading business-for-sale websites - reports that "Over the past 2 weeks we have seen a 25% increase in general enquiries for businesses for sale through www.anybusiness.com.au. This figure has complimented a 23% overall increase in total traffic numbers to the site for the same time period - a pretty significant number considering the environment we are currently operating in." (28th April 2020)
UPDATE: LINK - the world's largest business broker - have reported website sessions at an all-time high with a 67% increase over the same 30-day period in 2019. Combined with a doubling in their social media engagement. (20th May 2020)
UPDATE: - Australian consumers are exhibiting significant optimism about a COVID-19 economic recovery. Clothing, technology, home appliances and home furnishings favoured as priority purchases. See B&T Magazine article at: https://www.bandt.com.au/australian-consumers-show-signs-of-optimism-study/
There are now far fewer businesses for sale coming on to the market. Which means your business will get much greater exposure than would normally be the case.
On the flip-side and based on previous experience of economic downturns, you'd expect a surge of businesses to come onto the market once things start to pick up. It will be much more difficult to create visibility with buyers when this happens.
If your business is still operating you'll be in a far stronger position than businesses that have had to close their doors temporarily.
Even if you're not currently trading, positioning yourself to ramp-up activity quickly once the current crisis starts to ease will give you a significant advantage with prospective buyers. Check out the clever way this small business in Wuhan has got things moving again.
If you're able to present solid financial results for recent years (and especially for the first half of 2019/20), this will again put you in a good position with savvy buyers.
Investment consortia targeting business acquisition opportunities in the current environment are being formed right now. For instance, J P Morgan is in the process of raising $10 billion to target specific industry sectors that have the potential to recover quickly from the current difficulties.
It's a gamble to put your business on the market at the present time. But not a hugely expensive one. A small investment in marketing could produce a return of 100-fold or more!
Trying to hold on, especially if your heart is on longer in it or your personal circumstances make that difficult, might be an even bigger risk.
If you'd like more information on how to sell your business in these difficult times, contact me on 0419 241 099 or firstname.lastname@example.org