4 Tips to Sell Your Business In the Current "Covid" Market

Selling a business has changed in 2020. In this video, four tips are discussed to sell your business in the current "covid" market.

Selling a business has changed in 2020. In this video, four tips are discussed to sell your business in the current "covid" market.

1. Be Prepared to Show Current Numbers. The first thing buyers want to know, is how the business is performing in the current market. Show a month-by-month revenue and expense breakdown, of how the business has performed during Covid. A buyer wants to see, the trajectory, of how the business is emerging from this past spring. An item-by-item breakdown of the revenues, is also in demand, as buyers are focused on what product lines can be eliminated or enhanced to better control the cash flow.

2.Be Prepared for A Lease Negotiation with the Landlord. Buyers are constantly asking, if the landlord, is negotiable to a rent concession, to get through the covid period. Be prepared, that the outcome ofof the deal, may hinge on the landlord’s willingness, to engage the buyer, on a rent discount or concession.

3. Be Flexible on Terms. Buyers are looking for financing opportunities to leverage their money. Be open to seller financing, it’s a loan, provided by the business owner to the buyer or an earn-out.

4. Understand that this is a buyers market and price accordingly. Most buyers are risk-averse, and will not acquire a company, without a clear understanding of how Covid is impacting and will impact the business. A listing price, that accounts for buyers increased risk of owing a business, is a must in today’s market.