Why Now Might Be The Time To Position Your Business To Sell
Takeaway: Times are tough, and may continue to be tough for many businesses, but buyers are still looking, and when the market bounces back, you will be in a better position to sell.
If the COVID-19 crisis has caused you to feel concerned for the future of your business, it’s time to take control and get ready to make big moves.
What is the current situation like in your business? If you are concerned that your business situation has changed, you can understand it further by getting with your trusted advisory team, such as your CPA, attorney, and M&A Advisor.
Is is very important to remember during this time that the more you prepare for the outcome, the better your chances of success will be.
Make A Plan To Sell:
The COVID-19 situation will not last forever, and it is nearly impossible to tell when it will “all be over.”
Which is why you can take this time to do the following:
1. Get a proper Comprehensive Business Valuation
2. Assess your business’ strengths, weaknesses, and financial situation
3. Organize your financial information, and review your situation
4. Get with your M&A Advisor to discuss your options for presenting to potential buyers
If you develop a good exit strategy ahead of time, you can come through the crisis in much better financial shape than you otherwise would.
The Time To Act Is Now
There are many buyer groups who are looking to purchase businesses at this time, and all them understand the impact that the crisis has.
Typically, buyers will want to see the past three years of financial information and performance about your business, and will also take that into account when making decisions, and negotiating.
We receive buyer mandates and requests for information on a daily basis, and during this crisis, our requests have continued to come in.
Which is why we are recommending business owners to act on this unique situation now.
Buyers will value your company on the basis of average sales for the past three to four years. Ideally, your company should have at least one year of sustainable growth before going on the market.
You could sweeten the deal by helping finance the sale and agreeing to stay on as a consultant.
There is a lot of money in the market right now for acquisitions.
We are here for you if you have questions about selling, and ready to help you get started when you are ready.
YOU CAN GET A FREE ESTIMATE OF VALUE –
LEARN THE SECRETS OF SELLING YOUR BUSINESS
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