Selling During a Pandemic: What Baby Boomers Can Learn From Brokers

According to the U.S. Census, Baby Boomers own more than half of American businesses. As the COVID crisis heads into another wave, uncertainty is everywhere. Boomers may be eager to get out now, but selling during a crisis is rarely ideal. Of course, some types of businesses are thriving, and M&A in some sectors has even increased. So could you be one of the lucky ones during the pandemic? Here’s what you can learn from a business broker:

Essential Businesses Are in High Demand
Essential businesses are in high demand now—indeed, demand may never be higher. Buyers want profitable companies, and the competition among buyers is steep. If profits have increased and your business is in excellent shape, now could actually be the ideal time to leave.

Struggling Businesses Must Find Ways to Thrive
For owners struggling with the aftermath of COVID-19, it’s important to find new ways to thrive. It may not be possible to bring sales back up to where they were, but you can still improve your revenues. Preparation is always a good selling point, so when you are finally ready to sell, your work to generate value during COVID will increase buyer interest.

Consider an Asset Sale for a Failing Business
If your business is failing and you don’t know what to do, an asset sale may be the most graceful and lucrative option for preserving your assets and getting out now. Your physical assets, brand, intellectual property, and other items can bring in significant funds, but you’ll need an outside advisor to counsel you on how best to do this.

Operate Your Business as if You Intend to Sell Tomorrow
Whether you hope to remain in your company through retirement or are itching to get out as soon as possible, you must operate your company as if you intend to sell it tomorrow. You never know how things might change. Maybe the market will tank. Maybe you’ll get sick. Maybe you’ll get an unexpected offer. No matter where you are now, be prepared for the possibility of a totally different future.

Consider What’s Involved in Staying for Another Year
A year from now, we’ll have a much better idea of how the pandemic will affect your business for the long-term. If you can stay in, consider doing so, especially if your business is struggling and you think you can get it back on track. Of course, before making this commitment, you need to weigh its costs. Do you have the energy to sustain your company at optimal performance for another year? Because if you can’t fully commit, it’s time to get out.

Know That Business Value Basics Never Change
The pandemic may have radically altered the world, but it has not changed the fundamental dynamics of selling a business: buyers want to minimize risk and sellers want to get as much out of the transaction as possible. Competitive businesses are always worth more, and strong growth trends are compelling even when there’s a pandemic.

Understand That Economic Turmoil Inevitably Passes
All economic crises eventually end. This one is no exception. Every economic crisis changes some things, though, so businesses that can anticipate and stay ahead of the coming changes stand to thrive following the pandemic.

This, too, shall pass but where you stand when it’s over heavily depends on getting quality advice and assembling a clear exit plan.


Business Acquisitions, LTD
Established in 1986, Business Acquisitions, Ltd. has a team of knowledgeable, licensed professionals with extensive experience in business sales, mergers and acquisitions. We have industry experience in finance, business ownership, marketing, sales and corporate management. We understand the complexities involved in the change of business ownership.

The principal value of a business broker is to act as an intermediary between the seller and the buyer. Both selling a business and buying a business can be a stressful and emotional process. The change of business ownership is complex and we can create an environment conducive to productive negotiations to the benefit of both the seller and the buyer of a business.