STICKING TO YOUR SALES PLAN DURING COVID-19

Few businesses have benefited from the onset of the pandemic and the havoc it’s wreacked around the world.  If you were preparing your business for sale in the next two years when the virus stepped onto the world stage, you’ve been more than a little unlucky with your timing on the face of it.

It’s not necessarily the end of your dream, though; appearances can be deceiving.  In fact, as experts in business sales, we’d urge you to view this as an opportunity to think more laterally during your sales preparation stage.  Your timeline may have been forced to change, but that is no reason for you change your plans entirely.

DON’T BELIEVE ALL THE BAD NEWS YOU READ

It’s very easy to be influenced by reports and projections that are being published by the hundred every day while the world at large is social distancing and self-isolating at home.  We all know at least one person in our sector or a related one who deems him or herself the latest ‘expert’ on what to do during this strange time.

While projections of how the global and national economy will recover from the effects of this downturn can be useful, they cannot be taken as trustworthy sources of advice yet.  As with any other major disruption, including that of the Great Depression, the economy will survive and recover.  When and how are the two big questions that remain unanswered for now.  Which leaves you in the position of reaching for the one authentic conviction that you do have – the one that you can count on:  your desire to sell your business.

While your facts and figures may have changed since the onset of the pandemic, your desire to sell probably has not.  If it hasn’t, then don’t change your mind right now.  Commit to seeing this period of uncertainty through with a resolute mindset:  your facts and figures will change again before all of this is over and it’s important that you hold fast to your authentic conviction of what’s right for your life.

Remember, your decision to sell doesn’t have to change, even if your timeline does.

SELLING YOUR BUSINESS TAKES TEAMWORK

If you’re going to listen to anybody’s advice during this time, make sure it comes from experts who have proven experience in business sales.  Apart from the value they can offer you in terms of interpreting the market conditions as they apply to your business specifically, it’s good for you emotionally and psychologically to have a committed team around you during this time.  Resist making any sweeping decisions without their input.

As time goes on, new solutions and opportunities will come up that perhaps were not a part of your original sales plan but which will get you there.  In order to recognise them when they appear during this difficult period, you need the people who know what they’re looking for on your side.

Take heart.  It’s not all bad news out there.  Regardless of the panicky reports and forecasts you read online these days, there’s a huge amount of surplus cash in the world looking for good opportunities.

Remember, investors do not like to sit on cash.  Rather, they want to put it to work.  The good ones are used to taking risks for the promise of greater returns.

As a case in point, our last two agreed deals in April 2020 achieved over eight times multiples despite the pandemic.  These transactions were both in the making for over a year.  What’s more, Covid-19 made no difference to the price whatsoever. Neither acquirer attempted to chip on price.  We haven’t experienced any reduction in prices offered from the market.

Whether you want to move ahead and sell or to hold back and prepare, EvolutionCBS can help.  Find out how you can continue to prepare your business for sale without having to make any premature decisions by talking to one of the team at EvolutionCBS.  You’re welcome to come along to one of our free EvolutionCBS webinars.

See you there!

 

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