To most people this may NOT seem like a great time to buy anything, let alone a business. But that may be exactly why now is the right time.
As every country mobilizes to stop the COVID-19 pandemic, Central Banks all over the world have committed trillions of dollars in emergency funding in support of the global response, workers, businesses, cities, states, schools, hospitals, and financial institutions. The disruption caused by this virus has impacted every aspect of society in both negative and positive ways.
For many, the scale of the coronavirus crisis calls to mind 9/11 or the 2008 financial crisis—events that reshaped society in lasting ways, from how we travel, where and how we buy homes, where we work, to even the level of security and surveillance that we are willing to accept.
The bifurcation in the economy is staggering, from the number of workers that are unemployed in need of basic food, shelter and water to a stock market that continues to hit all-time highs. Nearly every industry has experienced significant changes and shifts during this COVID-19 pandemic. Many small businesses are barely hanging on and some business owners are facing the thought of just closing and not reopening.
These conditions combined with job security being a real concern for many, buying an existing business could provide the opportunity to achieve greater stability for the future, especially with interest rates at an all-time low.
Purchasing a company that is already established may be quicker and easier than starting from scratch. If you choose to buy an existing business, your investment should pretty much be turnkey. However, you will need to put time and effort into finding the business that is right for you.
Do your research, any business you buy needs to fit your specific skill set, lifestyle, and aspirations. Think about what you can bring to a business and what you would like to get back. Consider your motivations and what you ultimately want to achieve. And most importantly prepare a 3 to 6-month Cash Forecast!
Having experienced professionals in your corner as you go through the purchase process can have a significant impact on the outcome of the transaction.
Good Luck!
Carl Falletta