Strong Buyer Activity Resurfaces!
Allow me to share some insights with you from the last few months. For many business brokers and finance specialists, March 23rd saw pipelines freeze, deals put on hold and a complete pause in transaction activity. Understandable, because who would complete on a business at a pre-agreed price, just as the very business is forced to close and trading activity stops! The sensible buyer is waiting for the new normal to be established before recommencing the process.
But who else is emerging as buyers and what are they looking at? We are experiencing the resurgence of high-quality buyer activity from those mid-level corporate types looking for mid-life career change. Brexit resulted in this hardy group of people sitting tight in their corporate careers, because who in their right mind would leave a secure job and venture into self-employment during all the Brexit debate, when the future of business and the economy was so uncertain? Yet, the Covid lockdown, extended periods of furlough, business restructuring and companies looking at new ways of working is resulting in many employees who thought they were in 100% secure employment to start to wonder. Is my job secure? What if my post or job-role is a victim of outsourcing or restructure? Will my company survive?
We are having conversations every day with talented, successful career people who are looking to secure their future income by investing in a business. The conversations are now familiar, with prospective buyers emerging who have sat on cash reserves for a few years, but who are now looking for a better-yielding home for their nest-egg, to create a business income and grow a re-saleable asset.
Their interest is in two sectors that are weathering Covid rather well. Commercial cleaning and property management. We have some super franchise territories available via some top-class commercial cleaning brands. They are coming out of Covid racing ahead, with their client-companies doubling-down on their hygiene and cleaning activity and new clients emerging. Similarly, Residential Lettings is also robust, with many of our resale clients reporting minimal, if any, drop-off in revenue (but with better net profit because they have had to streamline how they operate!).
So, if you are sat on your cash and want to take the risk out of the ‘job-retention vs redundancy’ equation, take a look at some of our listings. They could offer better security than many job sectors right now, and allow you to build a saleable asset. Equally, if you are a business owner looking to sell, the time could not be better and buyer activity is gathering serious momentum.