Business owners are contacting us to ask whether this is a good time to sell their business. Should they defer the decision until the coronavirus is under control and conditions have improved? It’s a good question. Here are some observations:
It’s safe to sell your business.
We are able to use video conferencing applications, so you never have to meet physically with the buyers. We can even arrange virtual tours of your business so the buyers don’t have to visit.
Financing is available.
The Small Business Administration (SBA) and other institutions are actively trying to maintain and strengthen the economy by ensuring access to capital. There are many programs which will encourage buyers to get a loan now, often at very low and very attractive interest rates.
If your business hasn’t been impacted significantly, it’s a good time to sell.
Some businesses are doing just as well if not better than last year. Liquor stores, many IT/online businesses, cleaning businesses, and many others have not been hurt by the coronavirus. Additionally, the lower interest rate loans available through banks on SBA-backed loans make it affordable for buyers. And buyers are still out there! Many potential buyers have been waiting for a slowdown to present the right opportunity to get into the game. They hope to be positioned to take advantage of the eventual recovery.
Delaying your sale doesn’t equal a better sale price.
Your business valuation is usually based on the prior 3 years of financial statements. In the face of the coronavirus uncertainty there may be a small discount. But a year from now, the three years of statements will include how your business performed during this extremely volatile time. That could have an even greater impact on your sale price.
You’re not selling your business now, you’re selling it in 3 to 6 months.
Selling a business is a long process. This is the time to start the process and begin preparations for the eventual sale of your business. If things are a bit slower for you, it’s a great time to have meaningful conversations and conduct that business valuation. It also gives us time to prepare the necessary paperwork and reports so you’re ready to launch your listing at the perfect time.
CGK Business Sales is here to help you sell your business. We sell around 80% of our listings, which is far above the industry average. We get results through accurate valuations, expert advice, and a great network of potential buyers. Those factors haven’t changed because of the coronavirus. Contact our Austin office (or any of our locations nationwide) to discuss how we can help you sell your business. All communication is completely confidential and creates no obligation. We won’t share your info with anybody else – we just want to help you.