Should I Buy a Business During Covid?

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Should I Buy a Business During Covid?

Posted by BBA
01 September 2021
 

Should I buy a business during covid? Times are uncertain and the decision to buy a business even more so.....BUT there are profitable businesses for sale.

 

As business buyers advocates we are continually contacted by buyers that feel now is the right time to buy a business. With ongoing lockdowns, particularly in Melbourne and Sydney, buyers sense an opportunity to purchase a business cheaply due to the impact of the covid restrictions on a businesses sales and profit. 

Many businesses throughout Australia have been decimated by the current covid lockdowns and have lost all hope for the future. Owners just want out. A quick sale, a walk in walk out with no conditions and having someone to take over their lease and their problems. The question is, will they recover.

In contrast many businesses have exceeded expectations with increased sales and ultimately profit. Some have reinvented themselves to align with products and offerings that are in line with essential services, whilst others have been fortunate to be involved in an industry that has had an increase in demand. 

Some larger companies are even selling off non core businesses that were purchased as bolt on businesses. Whilst they are profitable, well operated businesses, they are no longer a required business and therefore no longer are part of the companies corporate growth plan.

The decision to buy comes down to what type of business. You don’t want to buy someone else's problem but you do want to be ready if the right opportunity to buy arises.

We can’t physically visit a business for sale during lockdown but we can do our homework on the business to be ready to go. Technology nowadays allows us to search, investigate, analyse, view and even meet the vendors via zoom.

Whilst buying during lockdown is risky, searching and determining whether a business is worth buying, and doing all your investigative work can happen now.

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