21 Apr COVID-19 Has Presented an Environment Rich in Opportunities
Many years from now people may look back on the COVID-19 pandemic not only with sadness, but with a sense of wonder at just how many incredible opportunities were created for those interested in buying a business. In the BuyBizSell article, “COVID-19 Stalls Q1 Transactions; Presents Once in a Lifetime Opportunity for Acquisitions,” the author points to the following famous Warren Buffet quote. It states that investors must “be fearful when others are greedy and greedy when others are fearful.” Currently, most investors are somewhat paralyzed by fear. Without a doubt, this fear is creating opportunities.
As the article notes, it is important to remember that not every business is suffering at the hands of the COVID-19 pandemic. Companies operating in some sectors, such as delivery and online education, are seeing an increase in their businesses.In some cases, these increases are dramatic.
There are other businesses, such as HVAC and plumbing, that will likely see less of an impact as their services are always in demand. Companies that cater to home improvement and related areas are also doing well. Stan Pennington of IntelliTurf Franchise Inc. notes, “We just completed the largest financial expansion in our nation’s history. There are plenty of people out there with money to spend on their properties.” The bottom line is that there are not just opportunities to buy a business that is suffering from the COVID-19 pandemic, but there are also opportunities to buy businesses that are somewhat insulated.
The pandemic does underscore one truism of history: things can change fast. Planning for uncertainty is a must. You can’t go back in time, and you can’t control this current situation. You can, however, carefully think through how you respond.
As the article points out, “with change comes opportunity,” and now is definitely a time that is opportunity rich. It could be an excellent time for your clients to buy. Your job is to help them understand that opportunities exist and help point them towards those opportunities. Managing buyer fears is key to the process. Many prospective buyers will likely pass on the deal of a lifetime simply because they are afraid.
To help your clients understand that they can receive an unprecedented level of help from the SBA, read our article, “Has the Pandemic has Created a Historically Unique Opportunity for Buyers?” If you can learn all there is to learn about these new SBA programs and then distill that information down into an easy to understand way, it will help your clients see what is possible.
There is no denying that you, as a business broker or M&A Advisor, are currently facing challenges. But while the challenges presented by COVID-19 are unique, they are not insurmountable. You can focus on easing client fears, assessing business value in this uncertain climate or looking at the success of your own business. The key is to not remain idle but instead take this time to find ways to improve and prepare for the return of business as usual. It will invariably come.