Do Not Let COVID Ruin Your Exit Plans

Writing in November 2020, the author reported continued acquisition interest during lockdown. This was an advisory observation, not evidence that all sectors had active buyers or premium valuations.

In November 2020, the author reported strong activity in their own advisory work and expected demand for £1m to £10m acquisitions during 2021. These were historical observations and forecasts, not verified market-wide results or current guidance.

A current concern that holds back many business owners considering an exit, is the misconception that the COVID lockdown has created a ‘buyers market’ with many entrepreneurs thinking it’s not a good time to start the business sale process. Where this may be the case for some unfortunate business owners who have been hit hard by the lockdown, in my experience this is not a market-wide issue.

Many businesses have been able to adapt and change, some have even prospered during the pandemic. Small businesses are dynamic, this is their advantage in difficult times. Evidence of resilience and credible future trading could help attract trade buyers, but did not guarantee interest or a sale.

Don’t get me wrong, if you have the energy, motivation and resources to drive your business forward over next 5 to 7 years, continuing to operate could be an option, alongside reviewing your personal objectives and business risks. However, if this is not the case, perhaps you were originally planning your exit or retirement before 2023 or you have other pressing reasons to sell, don’t panic, you still have real options.

A successful business exit takes time, patience, and needs to follow a proven marketing and negotiation strategy. Take positive action, speak to a professional in confidence to better understand your options. I am a great believer in nothing ventured, nothing gained, so perhaps there is no harm in talking, but whatever you choose, do not let COVID ruin your exit plans.