What We Are Doing
At the beginning of 2020, the US economy was doing great – by most measurements. We were busy and had transactions in process. In March, the coronavirus caused many businesses to close or change the way they were doing business. In May, some of the closed businesses began to re-open.
It’s now June and transactions that slowed or stopped a month or two ago are now proceeding. We have new opportunities with Business Owners wanting to sell and are contacted daily by Buyers wanting to buy a business. We are optimistic about the future.
The last US business slow down was in 2008 and a few subsequent years. Many businesses saw their Revenue decline. Options to grow were to hire more Salespeople and maybe advertise more. This was a slow and expensive process. Another option was to look for strategic acquisitions. This allowed for regrowth of Revenue and added customers from the Company to be acquired. We advised a number of Sellers and Buyers during the 2008 to 2011 time period – with a lot of success.
Business values are based on history, current situation, and most important the FUTURE. A business in a down period can have a decline in Revenue and Profit, but that does not necessarily make the business decline in value. Similarly, a business that has a Revenue growth surge for a short period will not be worth substantially more unless the “surge” is almost guaranteed to continue. It’s about the estimated performance of the business in the future – and how the buyer sees it. If positive, buyers will be inclined to buy; if negative they won’t.
For us it’s business as usual – for over three decades we’ve been advising our clients with the sale and purchase of businesses. We believe the next months and years will present good opportunities for Sellers and Buyers. Please let us know how you are doing and what you hope to accomplish. We are here to assist in obtaining a favorable outcome.
Morgan Vaive, Vice President
Morgan.vaive@zoellnergarten.com
859-957-9657
John W. Zoellner, President
513-382-3797
About the Business
