During the 2020 COVID-19 disruption, sellers faced uncertainty about trading, funding and buyer appetite. This historical article considers how evidence of resilience and careful preparation could support discussions; it is not a guide to current market conditions.
By Tony Vaughan · Published · Last reviewed
If you are one of a number of business owners who are selling your business during the COVID-19 pandemic, you might be feeling a great deal of uncertainty…
However, while there is no disputing that the lockdown measures of 2020 had a significant impact on the business market. There still presents opportunities for sellers if you look beyond the storm…
There are still serious buyers
In the 2020 pandemic context, a seller needed to establish whether an interested buyer still had funding and acquisition appetite. This article does not establish how many buyers remained active or how accessible finance was.
There is a light at the end of the tunnel
Earlier disruption, including the 2008 financial crisis, illustrated why continuity planning mattered. Past recoveries did not establish when pandemic conditions would improve or guarantee that a particular business would sell.
You have an opportunity to change the tide
Pandemic resilience could give buyers useful evidence, but did not guarantee a valuation premium or stronger negotiating leverage. Sellers needed to distinguish temporary effects from sustainable trading; see the historical guidance on recording disruption and corrective actions.
You are not alone
A professional adviser could help assess changing buyer circumstances and transaction risks, without guaranteeing an advantage or completion. The principles of checking buyer credibility remain relevant, but this article describes 2020 conditions.
Common questions
Does this article describe today’s business sale market?
No. It was published on 16 June 2020 and discusses the pandemic and lockdown conditions at that time.
Why did pandemic disruption complicate buyer assessments?
Interrupted trading made it harder to distinguish temporary effects from lasting changes in earnings, cash flow and customer demand.
Did resilience during lockdown guarantee a price premium?
No. Buyers still needed evidence of sustainable performance, and any price depended on the business, funding and agreed terms.
What could an adviser help a pandemic-era seller assess?
An adviser could help evaluate buyer credibility, information requests and transaction risks, but could not guarantee completion during disruption.
General information from our archive, not personal advice.
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