The answer is YES for 63% of those we asked, based on this questions “Would you consider buying a percentage of a business now with an option to buy the rest when the situation resolves”?
(Q8 from the Xcllusive Business Buyers Report – April 2020)
We saw a little of this pre-COVID 19 but expect this method to increase in the future. It means the buyer and the seller will share the risk. This is very encouraging for the future.
Complimentary to this: What are the characteristics that will compel you to buy in this environment?
Low fixed overheads relative to sales level
Good forward plan
This is something business owners can do now to prepare their business for sale.
If you’re considering selling, have a really good look at your overheads – there’s never been a better time to renegotiate and reduce your overheads. Create a short but solid forward plan using bullet points to show the direction of your business..
To find out what else Buyers has to say, go here to read the full Report.
Now that we’ve had a chance to catch a momentary breath, thought it worth sharing with you what we learnt from the GFC as a gauge to how this current situation may play out:
Beat the Rush! Unfortunately, there will be business failure fallout due to what’s happening but not just yet. Quality business to buy is available now and will be for the continued foreseeable future, or at least until the distressed ones start hitting and clouding the market. Being in front of the Buying pack will work in your favour.
Buyers continue to look to buy businesses, with our inquiries over the last week the highest they’ve been in some time.
Buyers do so because it is a good time to seek out opportunistic acquisitions of quality, or looking out for perceived bargains, or even for Income Replacement due to job loss.
Granted, it may take a little longer to transact, and all your risk-averse advisors will say the time is not right, but the longer time a business is in the market, it will give continued exposure, meaning more Buyers can come forward.
The market will take time to settle. You as the Buyer therefore may need the Owner to be around longer than first intended. This can be good as it will give some certainty of mutual support in sharing the risk, as well as the possible option of a reduced agreed payment upfront as well.
A good business it will stand out. A good business will always find a Buyer.
All of that said — nobody knows how far away waiting for a “better time” will be…
If now is the time to act for you, please subscribe on our Watchlistand be notified each and every time all businesses come on the market through our network.
What a pleasure it was to be able to take a momentary breath and give some strategic thought to practical business fundamentals required now. Thank you TeamInspiring Rare Birds. Onwards and Outwards…
In the spirit of knowledge sharing during this challenging time for business, we want to note some key takeaways from today’s deep dive mentoring session with Business Value Analyst, Exit Facilitator and Broker of Sales Denise Hall.
👉Assess avenues for collaboration. Which companies can you partner with to deliver value to your customers and amplify your reach and impact?
👉Understand your greatest asset. Where is the $$$ coming from and how can you maximise that product or service?
👉Reflect on your value proposition. What do your clients pay for and how has this now changed? How can you pivot within your scope of value to adjust to their current needs?
At times like these it’s more important than ever to have someone with a high level of business experience and expertise in your corner. That is exactly what our Rare Birds Mentors are here for and they are waiting to make a difference for you: https://lnkd.in/gwwskjx
Online Businesses are booming. It makes sense then that we are seeing an increase in the number of online businesses for sale, some well-established and some start-ups. A relatively new area, how does the sales process differ from a bricks-and-mortar business?
The fundamentals still apply; it’s only the business model that is different.