Should You Sell a Business During COVID-19?

COVID-19 has made a significant impact on businesses across the country. During this uncertain time, it can be hard to know what to do with your own business. If you’re wondering if you should sell your company during COVID-19, continue reading.

During this pandemic, it is a buyer’s market, rather than a seller’s market. This is especially true for the industries hit most hard by the pandemic: retail stores and restaurants. Even though these types of businesses took a hit, other companies are either unaffected or thriving.

Whether or not you should sell your business right now depends a lot on what type of business you own. For example, if you own a construction or engineering company, 2021 may be your year to sell. These types of companies experienced setbacks after the recession, but they are making a comeback and contribute over 4 percent to the country’s GDP. Buyers have their eye on construction and engineering companies.

Another type of business buyers are looking for are manufacturing businesses. Manufacturing companies were not deeply affected by COVID-19. Because of this, buyers feel safe purchasing these companies.

Business services companies are holding up well in the times of COVID-19. These companies account for around 15 percent of industry sales in Main Street and lower middle markets. If you own a financial planning company or a law firm, buyers are looking to purchase companies like yours because of increases in demand and growing customer bases.

Now, if you own a mom and pop retail store or restaurant, you may think that selling is out of the questions because of how hard your industry was hit by the pandemic. However, you can still find a buyer for your business. The CARES Act is boosting sales and buyers have confidence in many mom and pop shops across the country. While it may be a tough decision to sell your business, there is a buyer out there.

For assistance selling your business, get in touch with Hallmark Business Brokers. We are available by phone at 941-445-4726.