Some Opportunities may be Improving ? The second is business owners that are motivated to sell. Business owners in this category are willing to take a discount on pre-COVID-19 prices or accept earnouts to share some risk with the purchaser. Whether it is due to the financial situation of the business, or the energy level of the business owner, there is a desire to get a deal done. Purchasers in this category are willing to take a risk if they can get a good deal on a business that they believe can be turned around. For these businesses, the negotiating leverage is held by the purchaser.
While most business owners have been in the wait-and-see camp so far, we anticipate more business owners will be motivated to sell as COVID-19 continues to drag out and take an emotional toll on business owners.
WHAT DOES THIS MEAN FOR YOU?
If you are a business owner contemplating the sale of your business, it is time to reflect on which category you are in and ask yourself whether your profitability remained stable throughout COVID-19.
If so, you likely are in a position of strength when you decide to pursue a sale. Knowing that the demand is still high, consider if this is the right time to sell in order to capitalize on that strength.
Has your business suffered due to COVID-19? If so, what is your timeline for a sale?
If you have the energy and runway to ride out the storm, focus on transforming your business to be more attractive when you decide to sell.
If you do not think you will be able to ride it out, then consider selling sooner rather than later. The economy is still benefiting from unprecedented government spending and we have not yet witnessed a surge of business owners that are motivated to sell. If you think you need to sell before things recover, you want to sell before the market is flooded with other competing businesses for sale.
https://www.smytheadvisory.com/blog/selling-your-business-in-a-time-of-uncertainty-what-you-need-to-know/