Is it a good time to sell a business? Yes it is a fantastic time
I have found that buyers are starting to come back to the market and are actively looking for businesses. After a lull caused by the last Covid lockdown enquiries went from 5 to 10 a day down to less than one. It is what happened in the previous lockdown and took a few months after the lockdown to rebound.
The stock of businesses for sale is on the light side which means buyers have limited choices. I have lenders approaching me regularly wanting to loan money to businesses. So that indicates the money is available but there is limited stock of businesses for sale.
What businesses are not moving? Hospitality and retail (fashion, book shops etc). These are areas that I avoid as there is an oversupply and a slump in the amount buyers are willing to pay for them.
What is hot? Anything to do with food distribution, catering, IT, manufacturing and service industries. Low stock and more buyers coming onto the market means that prices are higher than normal, which is amazing info for sellers.
What do you need to do before selling
- Make it look easy for someone to transition into the business.
- Three years of accounts available.
- An inventory of assets
- Be able to show creditors and debtors
- Have an idea of how much stock is held, this will go up and down and will be valued at the time of settlement. The buyer needs to know if they need $1M or $40k for stock.
- A list of employees with what they do and how much they are paid.
- Who is key to the business operating?
- Identify any add-backs (monies taken out of the business that is not required to operate the business)
- Get a great business broker
Other options
- time to sell your business selling a business owners new work
- new work sell worth important personal current difficult Facebook
- would find sell it’s share selling sell world sell trends you’re exit people
Do you offer complimentary consultations?
Yes, we do call us now.
