Emergency situations tend to bring out fight or flight behaviors. For business owners, covid-19 has certainly made many decide whether to fight or flee.
The economic toll of covid-19 and the lockdowns and business restrictions are going to have severe effects on business owners for years to come. Unfortunately, we hear from business owners every day about the devastation to their business, whether it's a default on their commercial lease, whether they can invoke force majeure in their contracts, or having to lay off staff.
However, every negative has a corresponding positive and sometimes it really is a mindset that makes the difference. We've been inspired by the number of current and potential business owners who see the current situation as an opportunity.
This includes purchasing a business. We've closed a number of business purchases for clients since the start of the pandemic. In fact, we've gotten a record number of calls for help with business purchases over the last few months. How could this be?
1) many sellers of businesses right now are at an age or stage in their ownership where they've quite honestly been looking for an excuse to sell or do something else; covid-19 is the perfect opportunity for them to get out;
2) many business owners that have been in business for a long time are too tired and exhausted to try and pivot their business business model; they know the kind of effort, dedication and financial burden it is to pivot and they just don't want to do it;
3) some business owners have reached a level of distress and need to sell, or they're going to have to dissolve the business.
These factors are good for buyers looking to invest in and purchase an ongoing business. There are a number of "famous" businesses going out of business every day. Can you imagine the value of purchasing a long-standing business with a name, reputation and customers already set for you? If you're already a business owner, there may be competitors out there looking to sell and you can really increase market share.
Our office helps people buy and sell businesses every day. Whether you're looking for help with a stock purchase agreement, asset purchase agreement, due diligence or even looking over a business plan, reach out to our office today for help. We offer convenient locations in center city or the main line.
There's never been a better time to buy a business.
Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.