Buying a business can take a significant amount of time. If you begin the process now, it is likely that you will complete an acquisition towards the end of 2020 or early 2021. With this in mind, you need to be considering, today, what your plans are for 2021 to be in a position to realise them.

Uncertainty in the market means that now, more than ever, buyers need to have clear acquisition goals and certainty on how they will achieve them. The current climate requires a strategic approach, not just focusing on short-term gains, but on longer-term value and returns. It is only in this way that you can achieve your strategic growth aims.

Is 2021 the Right Time to be Buying a Business?

If you are looking for safe, reliable income, then now is probably not the time for you to buy a business. The uncertainty surrounding COVID-19 has created an opportunity for buyers who are willing to take risks to realise stronger returns.

A company can be fundamentally successful, but the loss of business during this pandemic has put many at risk of liquidation. The average business owner is understandably nervous right now.  Some enterprises may require an injection of capital to keep the business afloat through this tough period. A business given a strong cash position will, therefore, be well placed to capitalise and compete effectively in what will be a recovering market.

Is 2021 the right time to be buying a business

What Will You Need to Successfully Buy a Business?

Growing your business through acquisition is more effective than organic growth, but you will need to assess the risks. It is important that it does not negatively affect the performance of your current business.

To increase your chances of buying a business successfully, it is important to have finance in place. Whether this is your own capital or borrowed from a lender, cash upfront is generally required to persuade an owner to part ways with their business. It is possible to defer a proportion of the acquisition payment, but it is rare that an owner will accept more than 50% as an earn-out.

Choice is another key component of a successful strategy. The more options you have, the greater the chance of buying a business that best suits your acquisition goals. It gives you added control over the process, allowing you to shift your attention from one opportunity to another, as well as generate high-quality deal flow.

 

What Business Sectors Should you be Looking at?buying in the right sector

In order to be successful, it is important to buy strategically. For most acquirers, this means that you should be looking at buying businesses in sectors you are knowledgable in, or can bolt-on to your current operations.

It is also key to understand, where possible, the future of thesector. Certain sectors, such as travel and hospitality, are unlikely to return to normal anytime soon with social distancing measures in place for the foreseeable future. Whereas other sectors, for example, manufacturing and engineering, are beginning to bounce back following the recent reducing of restrictions on business operation. Of course, if you are risk-averse, then asset-heavy businesses can give that extra level of comfort.

 

Speak to the Business Buying Experts

So, if you are seeking to successfully buy a business for 2021, then speak to the independent experts, Unloq, on 01962 609 000.

We help clients find and acquire the right business for them. We assist them throughout the process with research, analysis, and negotiation. Contact us today, for a free and confidential conversation.

If you want to Unlock More Opportunity, Let’s Talk

There is only so much you can tell from reading our website.

Our commitment to client confidentiality means that we are
careful about details on specific clients or mandates.

At the same time, if you contact us, we can share examples of our work,
discuss projected outcomes and cover off how we can help you.


By submitting this form you are agreeing for us to contact you about our services. Note that all data shared with us is private and will not be shared publicly or passed on to third parties without your written consent. View privacy policy

Contact Unloq Limited

Main Office:

First Floor
5 Fortuna Court
Calleva Park
Aldermaston
Reading RG7 8UB

Contact:01962 609 000