When business is good and working to plan, the owner creates and builds value in the business, the longer it trades and the more profit it generates, the greater the value of that enterprise. Many owners see the future sale of their business as their pension pot or a large contribution to their retirement fund.
The harsh reality of life is that sometimes things do not go as hoped or expected and some businesses do fail. You may have worked your socks off, invested your savings or even borrowed to try to get your business where you want, but if the business does not go to plan, you fail to generate enough revenue, legal, regulatory, health or other personal reasons the business may have no choice but to close its doors.
Clearly not a planned event, but all is not necessarily lost when you stop trading. You may have value sitting in both tangible and intangible assets. If your business is property based, have you spend cash on leasehold improvements, is the rent low or the location a premium one, does the business hold any sought after licenses, distribution rights or other hard to get agreements.
Your hard work and the cash used to launch and build your business operation could now be the opportunity and starting point for a new entrepreneur or existing business. The fact is there are buyers willing to look past the COVID 19 pandemic to acquire the best locations, assets and Intellectual Property to launch or grow their business.
Too many small business owners just simply shut down and start a formal insolvency process without realising their business could still have value and be of interest to a buyer. The business may still have valuable assets that someone will want to purchase, it could be easy to forget the value in your goodwill, including the business name, customer base, history and reputation. Often the intangible asset value is far greater than the physical assets of stock and equipment.
In every economic downturn, whether created by financial crisis, pandemic or other, there will always be businesses who are unable to survive the storm. These business owners must realise that in many cases they may be able to release some value by selling the assets of their business, even after the doors have been shut.
If you have recently closed your doors or considering shutting your business within the next 6 months, it may be a good idea to consult with a professional business broker. You have nothing to lose by discussing your situation to see if your closed business has any value and could be sold.
Try contacting one of the following business brokers to discuss your situation.
www.buymybiz.co.uk - All business types
www.buymysalon.co.uk - Health & Beauty Business
www.buymyrestaurant.co.uk - Restaurants, Pubs, Takeaways & Cafes
