2020 was a year of unprecedented adjustments. The COVID-19 pandemic has shifted our views on how we run our business, how much risk we are willing to tolerate, and, perhaps, when should be the right time to exit/sell?
VSP Valuation provides independent professional business valuation services in Toronto to the business and legal communities. We also provide independent litigation support services in the GTA in the event that you find yourself in a commercial, shareholder or matrimonial dispute.
Why Do You Need a Business Valuation?
When to sell your business is an important decision to consider. We offer professional business valuations in Toronto which consider the unique risk factors facing your business that will help you address this issue.
Conducting a business valuation can be complex and challenging, but our valuation services will help you develop your exit/succession plan, avoid and/or resolve shareholder disputes and decide if you should keep or sell your business in 2021.
As a manager of your company, you are facing decisions that should not be taken lightly and often require valuation expertise. Regardless of your circumstances, our prudent team can provide you with information to help the decision making process regarding your business. A business valuation expert can help you maneuver through the questions looming around the future of your business.
Why Sell a Profitable Business in 2021?
There are various reasons why you may choose to sell a fruitful business. Here are some reasons to contemplate selling your business:
- Market Timing – Given the level of supply and demand for businesses in your industry, 2021 could be an opportune time to market your company to multiple bidders and maximize the price you receive.
- Growth Plateau – You may be able to maximize your return on investment if you sell before a growth plateau or period of declining sales and profits.
- Loss of Interest – What started as an exciting venture may have now run its course. Every successful business has been made profitable due to thousands of hours devoted to its prosperity, but even large profits aren’t enough to hold the owner’s interest. Selling your business before you lose your passion for running the business is a proactive approach to getting out before it is too late.
- Profit Required for Other Reasons – Even the most profitable businesses may be sold due to life’s adversities. Liquidating your business assets and properties can be related to personal issues requiring a large financial payment including divorces, legal troubles and other case-sensitive issues.
- Bad Location – Your business might have started in a thriving community, but modern times have resulted in the area being vacated or the overall economic status of your location has declined. Relocating your current business will take a lot of financial and business effort, from leasing or purchasing a new commercial property, to hiring new staff that can work from the new location to finding regional suppliers. Selling your business may a more viable option for you.
Reasons to Keep My Business in 2021?
Strong and well-managed businesses will thrive in withering conditions. The ability to overcome difficulties and adapt to new challenges will create further opportunities for your business’ success. Deciding to keep your business in 2021 can be dependent on a variety of imperative factors:
- Increase in Customers – Positive customer relations will increase brand awareness and loyalty. If your business has a steady flow of paying customers, your financial profit will increase due to brand trust and appreciation of your services.
- Omnichannel Services – Omnichannel strategies are in constant demand through the decline of brick and mortar stores. Platforms including e-commerce stores and social media links can have a profound impact on the way you sell your merchandise. If you have flexible options for your customers to purchase your products, you will be able to reach a larger target audience in 2021.
- Confidence in your Niche Market – Spreading your efforts amongst hundreds of different ventures will result in missed opportunities for a smaller engaged audience. Staying focused on a smaller range of services with the highest quality service deliverance will optimize your profits and re-enforce brand loyalty.
- Remain Flexible – Adapting to market changes will enable you to provide your customer base with exactly what they require. Fluctuations in any industry happen frequently due to the dependency on technology; increasing your email marketing and taking into consideration product reviews will help your business stay above the competition.
- Unfinished Business – You may be going through an unexpected set back or experiencing a one-time dip (in customers, sales or profits) due to fallout from the pandemic. As a result, buyers would now be looking for a discount and would not be willing to pay the premium they may otherwise offer a growing or scalable business. At the same time, you may have unfinished business in terms of goals for your business yet to be achieved.
Protecting the Future of Your Business in 2021 – Professional Business Valuation Services
Our commitment to providing independent and supportable business valuation services will have a positive outcome, whether you choose to sell or keep your company in 2021. Contact our business valuation and litigation support team to ensure a positive outcome for your business by clicking here.