What Now? Part I

There are many decisions you must make given the dire impact of Covid-19. As a business owner considering selling, you have many questions about selling your business in today’s uncertain market. You may ask: “Do I sell now?” or “Do I wait?”
There are no clear, concrete answers. The economic crystal ball has become quite cloudy. Still, a few things to think about.

Reasons to Sell Now

  • It is uncertain when we will return to “normal”
  • Investors are still looking for quality businesses, priced fairly
  • Investors understand that the impact of this virus is more than likely an anomaly and will make adjustments to earnings 
  • You feel that now is the right time to exit the business (health, liquidity, divorce, etc.)

Reasons to Wait

  • Valuations will be affected by this recession
  • It might be best to wait as the market adjusts to a sellers’ market
  • You need to replace key employees
  • Your revenue (customers) has decreased by 20% or more
  • Current values do not meet your personal wealth needs

What You Can Do Now

  • Take advantage of federal assistance programs 
  • Contact customers for retention purposes
  • Develop a key (message? manager?) retention program
  • Determine the current value of your business
  • Focus on “key value drivers” that will drive value in 2021
Don’t Go It Alone 

Selling a business is complex. Partnering with an experienced, licensed broker and trusted advisor adds significant value. Buyers know:

  • Sellers who partner with an M&A advisor are far more prepared and committed to selling and closing
  • Brokers can compress the deal timeline and help eliminate roadblocks 
  • Sellers who partner with an M&A advisor are far more prepared and committed to selling and closing
  • Brokers can compress the deal timeline and help eliminate roadblocks

 

 

Let’s schedule a complimentary, no-obligation consultation. We’re confident we can provide you with the knowledge of your business’ value – and how to increase it by as much as 20%. Please contact us at 949.742.0711 or dsalazar@salazargroupinc.com.

Maximize your chance to reap the rewards of your life’s work.
Contact us for a complimentary consultation.