COVID has been pervasive for such a long time,
it almost feels like it will dictate the future of business for the remainder of time. However, everything ultimately runs its course, and COVID is no different. The vaccine is systematically and effectively working its way into arms across the US, and soon, life will return to some semblance of normalcy. Business too.
Last week the stock market took a sudden turn in the wrong direction, and I noticed some interesting parallels when evaluating my stock portfolio . When the market dropped, my immediate reaction was: “I should have sold some of my high-flying tech stocks when the price was higher. Now I’m stuck in a holding pattern, waiting for the price to come back up again.” In truth, my reaction may have included some stronger internal verbiage, but I digress.
COVID has affected potential business sellers in a similar manner.
If you were considering selling your local business prior to COVID, you may have been disheartened to see the potential value of your company decrease, concurrent with a decrease in 2020 revenues and profitability.
However, you probably stayed the course. You adjusted your business to the best possible COVID-adjusted reality. And like a stock investor during any normal bear market adjustment, you didn’t sell. Maybe you doubled down on your business, like a savvy stock investor – realizing that the value will eventually come back, given time, patience, and perseverance.
When the stock market rebounds,
as it most certainly will at some point in the near future, I’ll be ready. I’ve mitigated my position during this particular downturn and have doubled down where it makes sense strategically. And more importantly, I have a plan when the market rebound occurs. I have metrics in mind, in terms of my sell price for various stocks – because it’s critical to realize gains in order for those gains to effectively hit your bank account.
Are you working with metrics to know the right time to list your Bay Area business? When the time is right, are you ready to make the strategic call to sell? Only in this way can you ultimately realize gains that might be the difference between your hard work and your well-earned retirement. A business broker San Jose, CA can help you understand the metrics, and translate your revenues and earnings into multiples, which equate to business value. Perhaps its time to preemptively look for “business brokers near me” and get started on mitigating any potentially lost money on the table.
As we move from a COVID world toward a post-COVID world, our business brokerage San Jose CA Sunbelt team can help you understand the metrics, to better understand when to initiate a “sell order,” and realize a well-earned long term capital gain.
Jordan Zweigoron is a Senior Advisor with Sunbelt Business Brokers. He can be reached at (408) 436-1900, x105, or at [email protected]. Or connect with Jordan on LinkedIn.
