Selling Your Business in a Post COVID-19 World
Did you think we would still be discussing COVID-19 a year later? Some of us may have thought we would be in this for the long haul, others may have believed the world would normalize by Summer of 2020. While we may have finally turned the corner, this pandemic is still very real within our borders and it is still affecting our lives and our businesses. Even though we have had to put many things on hold, planning should not be one of them. Interestingly enough, business sales are still taking place, as many entrepreneurs are prioritizing their goals and plans for the future. If you are thinking about selling your business in 2021, we have put together a few ideas that may help if you are preparing for a post-COVID-19 sale.
Try to keep your business open/running
Depending on your industry, your business may have been uniquely impacted by lockdowns, stay-at-home orders, and COVID-safety restrictions. That being said, you may have had an opportunity to switch to e-commerce sales, deliveries, or even social media to sell your products or services. Whatever the case may be, do what you can to beat complete closure. All revenue collected – even if less than projected – will be beneficial. Not to mention buyers will be very interested to see how you diversified or got creative.
Keep your financials up to date
It is always important to keep accurate financials, but in challenging times like these it is imperative. If you have been keeping detailed month-to-month or even week-to-week financials you are ahead of game. If not, this would be a good time to go back over the past year and brings things up to date. Expectedly, your sales and profits may have suffered due to the economic crisis and forced closures. Showing how well you may be doing despite everything going on will be valuable information for a potential buyer.
Keep records of Everything
Did you have to furlough your employees? Did you have to shut down for at all? Did your suppliers shut down? Did you receive a PPP or EIDL loan? Have you applied for forgiveness? Your specific experience during COVID-19 is important to the overall picture. On top of keeping logs of changes, write down what you have learned, what you changed, and how you got creative in order to survive.
This is the perfect opportunity to be a leader in your market. What has changed in your industry? Do you think the changes will be permanent? Did your business thrive through the pandemic? Will that continue when things are back to normal? How have the changes you made shaped the future for your business? Your experiences, wisdom, and expertise through the pandemic can be valuable advise for potential buyers.
Improvements are key
As previously mentioned, getting creative to save the business is vital. How did you change your business or sales model? Did you make your products or services more accessible to customers in quarantine? Did you expand your offerings? Whatever improvements you inevitably had to make will greatly impact the value and sale price of your business.
Once you are ready to sell your business, contact Transworld Business Advisors. Our experienced team of brokers is prepared to assist and guide both you (the seller) and your potential buyer during an unprecedented post-COVID-19 world. Call us at 732-741-7024 or email email@example.com