What is the buyer profile in the current COVID-19 market?
There are still a number of savvy investors looking to purchase over the COVID-19 coronavirus period due to the decrease in some business prices which can present some excellent buying opportunities.
With unemployment on the increase and low interest rates this can create a good opportunity for people who now find themselves unemployed and looking to buy an investment or business to work in full time. Additionally, the Federal Government’s financial stimulus packages and pressure for flexibility from the banks during the coronavirus pandemic will only help to cushion the business market during this time. History shows us that the market will bounce back, it did after the GFC and it will again after COVID-19 restrictions are lifted.
Vendors should be aware that savvy buyers are still out there and are looking for good businesses with strong financial history before the onset of COVID-19, even with businesses that are now closed or have restrictions on their product offering, if vendors can demonstrate to buyers of their previous positive cashflow and if they can secure some landlord relief on their rent over this period it can provide a very good business opportunity for investors looking to buy a business at a discounted price. This can then place the investor in an excellent position when the market bounces back and customers start flooding through the business doors again. Basically this means a little short term hurt for a long term gain.
Also with vendors there are two very different types in the current market. Type A vendor are ready to drop their price significantly and do a deal over the next couple of months to give themselves a break from the industry. On the other hand Type B vendors are happy to hold onto their business, stick firm on their asking price and ride out the quieter period as they know the rebuild will be better than the setback.
This is a very unique period for both business vendors and purchasers/investors and talking with a 3rd party like jbb can help make sense of it all. To talk to a jbb broker further about the current COVID-19 marketplace, or to get an appraisal on your business value over this period please contact 0409 965 540 or firstname.lastname@example.org