Buying or Selling a business during COVID-19?

Buying or Selling a business during COVID-19?

As Covoid 19 sweeps the country, we are seeing the very worst.

Would anyone want to buy or sell a business during the COVID-19 crisis?

The answer to that is “YES”…But

From the start of the effects of Covoid, we saw an immediate drop in businesses for sale of about 30%. However the number of enquiries only dropped by about 15%. Businesses looking to sell have now started to increase and so are the enquiries.

So there are still Buyers looking at businesses for sale.

While a number of businesses were instantly shut down such as pubs, restaurants and hotels and hospitality venues and in a number of other categories, all of which saw interest suddenly stall.

Many of these Sellers withdrew their businesses from sale to wait for better times. Some of course have had to sell and we see some seriously pricing their business to get a sale.


There was a spike in enquiries on tech, on line and e-commerce operations as well as convenience stores, alcoholic drink retailers, petrol stations, medical centers, manufacturing and business to business operations.

Some Buyers know that cash is king and are looking for businesses that after covoid they can make good gains.


Banks and finance Banks and Finance establishments are very cautious in regards to lending and are making sure the business for sale have good financial records as were the Buyers and, in many cases the banks require that the Buyers have the cash reserves to run the businesses.

Banks and finance companies are still keen to get in on deals, one business at BBNA the finance company are happy to fund $500,000 However the Buyer has to have a healthy deposit and a plan to operate the business. Every finance deal is still based on individual arrangements and requirements.



Any business for sale should clearly highlight the COVID-19 impact on the business and revenue. A forecast on the revenue stream will gain trust and confidence, however, all parties need to understand that the Covoid era is unique and a forecast has very little basis on fact, so basing it on the likelihood of future trading using results of the past and the continuing support of clients would be important.

The goodwill value of a business will change dramatically as a result of the crisis and banks and buyers will certainly be critical of it.

Business Valuers are not as confident in using past multipliers and Roi’s, on industry standards. Valuations, as it is now stands and for the foreseeable future will be based on the individual business and the effects on it by the results of the covoid impact.


Selling equals confidence

Here is some information to provide or look for


  • Financial history of the business and its performance before Covoid

  • Current financial status and operations during Covoid
  • What strategies have been put in place in order to deal with the crisis
  • Suggest possible future strategies for growth in a post-COVID-19 world
  • Has the business’s aim and operations been affected by COVID-19. If it hasn’t, or has detail these.
  • What opportunities can be created from the market after the pandemic
  • The likelihood of recovery of the business in a timeframe
  • How has covoid effected your client base
  • Management and staff strategies moving forward
  • Detail any changes you have been able to arrange with your property or equipment leases.

There are still many hundreds of businesses in various categories that have not been impacted by covoid, there are also some that have had an immediate growth during the pandemic. Be aware of these also, as some of the growth may recede after the pandemic.

Be as honest as possible but you should also think carefully about and include all of the ways that your business will be able to develop and grow in the future. Creating a picture of the future for possible Buyers is how you will be able to close the deal.