The General Election 2015 brings with it more than its fair share of unknown unknowns. For business owners and their businesses, this brings both threats and opportunities.
Neither people, nor businesses like uncertainty, change, or the unknown. However, as we approach the final few hours leading up to the General Election 2015, and probably for some time after that, they are all there: uncertainty, change and the unknown.
So is this a good time to have your business on the market?
In the event that the newly empowered smaller parties end up playing a major part in the aftermath, then few businesses will change hands until the way forward is fully known.
But deals will be done! As indeed, deals will always be done.
There are always players in the market place seeking to take advantage, or gamble on the market peaks and troughs on the basis that some they will win, some they will lose.
Such is the persona of the classic risk taking entrepreneur that they always seek to take advantage of what they view as a market opportunity. The heart can always take over from the purse and in many cases this intuitive approach can pay substantial dividends.
Often, by merely ‘hanging on’, or being indecisive about whether to buy, sell or merge a business, owners risk losing a place in the market – effectively squandering an opportunity in a marketplace that may never appear again for a generation.
A business, like a bar of chocolate in a sweet shop, can only be sold if it is ‘on the shelf’ to be sold. Keep it under the counter and the hungry, sweet toothed potential buyer will walk past the shop window.
The redundant executive seeking a decent return on capital may just venture into the acquisition of a business that is in keeping with their hands-on knowledge and experience.
A computer expert will probably steer clear of an engineering shop, but may dive headlong into a computer support and servicing business. Likewise, the engineer may consider a light fabrication business, but never an engineering shop.
In such examples, the potential businesses buyer is not faced with extreme degrees of uncertainty, change or the unknown. And while the Venture Capitalist, by definition, is not an adventure capitalist, and bankers do not gamble as far as SME’s are concerned, investors and buyers may still accept the risks associated with a business purchase if they know the business, or the market it operates in.
So it may be assumed during this period of ‘what will happen’ that there are those out there who will wait to see the outcome and fallout of May 7th, but there are also those who are looking for an opportunity despite May 7th.
The SME owner is very much an entrepreneur, although usually on the cautious end of the spectrum. Taking on their first employee, or their twentieth, the SME owner is building up a team. It is usually the case that such a team does not like uncertainty, or change, or the unknown.
Getting the deal off the ground means the business has to be marketed and packaged, but discreetly. That packaging is like the wrapper for the ‘chocolate on the shelf’, but placed on a higher shelf where the little boys and girls with their pocket money can’t see it.
However, it has to be available to see by the chocolate gourmet who can get a whiff of a feast that lies beneath the wrapping, when they ask the right questions of the right people.
In other words, we do not necessarily need to agitate, or concern the employees when marketing the business – if it is marketed correctly.
Uncertainty always brings with it opportunity for both buyers and sellers alike. Packaged well and discretely marketed by A2Z Business Brokers, your business could be the opportunity that many investors or buyers are looking for right now.
A2Z Business Brokers is here to help you wrap up that tasty treat and pop it onto the right shelf – just waiting for the ‘gourmet’ to come along soon.
It has been a long campaign for the General Election 2015 and many of us will be glad to see the back of it, but for business buyers and business sellers alike – opportunity knocks.