Buying Opportunity for Small Businesses as entering covid normal
Buying a small business during Covid can be the start of a new adventure.
There is no argument its been a tough 2020 year.
Small business owners will reconsider if they wish to continue to post Covid
Some small business owners will make the heartbreaking decision its time to move on after getting through a big 2020. For some small business operators will want to move to secure employment or retire. There will also be those small businesses that are for sale which may have been on the market before covid hitting and now will resume their sale campaign.
Either way, small business sellers may be keen to exit their business and looking for a quick sale as lockdown ends. This can impact in both a positive way and also has some traps for potential buyers
On the upside when considering buying a business is now the time might be right . The business sale price might be right for a bargain. But with every deal comes some unknowns.
Look carefully before buying
The buyer must take the time to review the business financials carefully.
Previous published financials and turnover results might not apply some nine months later. Small businesses may have lost market share, so look at the financials carefully. Understand what has taken place in the business pre and post covid. Don’t just take the owners explanation, seek information yourself and look at what is, has been and what can be capitalised on to expand and develop new opportunities.
Covid 19 has also opened up an opportunity. A tired business may also be a business that can easily be pivoted for new adaptions. A business that isn’t online may be calling out for someone to take it to the web and mail order. A smart business operator will look at a business not only what’s on paper but also what can be redesigned once you sign the contract. Importantly look at the businesses sales and market. Do these customers still exist? Are they willing to buy and does the potential business have the opportunity to deliver?
As a small business accountant, we can help you analyse a potential business and look beyond what a seller may present in a set of financials.
We are here to help you explore your opportunities and help you capitalise on what Covid 19 has encouraged people to do. Adapt and do things in new ways. This time is where starting a business as we enter Covid normal will allow you to be part of the playing field that is now wide open to explore.
Contact Geoff on 95979966 and let us look at your potential business purchase.