The first financial quarter of 2021 was in no way different from the previous year, except that another variant of COVID-19 is shaking Europe to its core. Just when the Asian countries were rising to the challenges posed by the Novel Coronavirus, the second wave of the pandemic is sweeping across many regions. Contrary to the popular misconception that 2021 is a tough year to buy or sell a profitable business, it is actually shaping itself to become a favorable time. This blog will cover some of the factors that can contribute to active business buying/selling this year.
Industry sectors that were on a rage last year when it comes to buying or selling companies include technology, construction, transportation, engineering, distribution, manufacturing, services and healthcare. Though nobody can predict what the future holds for us, it is safe to say that the COVID vaccination program is helping people travel from one part of the globe to another. Businesses are rising to the challenges posed by the pandemic, undeterred and that is good news for the entire business ecosystem. Private companies that have continued to do well and turn profitable between 2020 and 2021 have also witnessed increase in valuations.
Getting bogged down too much by fear and uncertainty can make only matters worse. Also, heath awareness raised by government authorities worldwide are contributing to a conducive business environment. This in turn has created a demand for buyers looking to purchase businesses in the immediate future. On the other hand, the investment sentiment is also improving with increased funding for profitable businesses. Buyers should capitalise on this and cast the net for profitable ventures, something they couldn’t do in 2020.
Sellers must understand that only due diligence of their business will attract the right buyer in the long run, though there can be multiple prospective buyers. Another positive throughout the pandemic is the increase in the number of digital transactions online. Buying and selling businesses online is made possible through video conferencing tools like Zoom, Google Meet, etc, and the adoption of digital payment behaviour online has seen more virtual closings than ever before. If you’re a buyer, it is right to expect that the financial records and capabilities of the seller be made transparent online before closing on a deal. Talk to us before buying any business as we will take you through what it takes to achieve a seamless business trading process.