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COVID-19

A Survey on the Business Buyer and Seller Market

Hundreds of entrepreneurs in Canada are ready to use their cash to snap up opportunities as asking prices fall during the COVID-19 crisis.

The survey started out in the UK before being conducted in the US, after encouraging results for the marketplace.

www.BusinessesForSale.com, with over 60,000 businesses listed, ranging from convenience stores and camping sites to E-Commerce and internet businesses, conducted the survey with over 100 registered active business buyers in Canada. It revealed:

  • 55% of business buyers have more than $100,000 (Canadian Dollars) for a deposit or purchase
  • 32% have more than $200,000
  • 56% of buyers were looking to buy a business and 40% of buyers would consider a franchise (which was 10% more than UK and US)
  • 43% of business buyers had bought a business before
  • 78% of business buyers expect asking prices will come down as a result of the pandemic
  • 23% declared themselves as cash buyers with 20% of business buyers stating that they would have to rely on a bank to finance the deal
  • 81% of business buyers are fixed on buying the same business they were interested in before the pandemic hit
  • One of those business buyers surveyed, Muhammad Amjid Qazi, an experienced entrepreneur from Surrey, near Vancouver, who is looking for Gas Stations, Motels and Auto Service Industry opportunities says: “I have ready cash funds around $200k (Canadian Dollars) and rest needs to be financed by banks. The approval by the bank will be based on the assets belonging to the business without goodwill involved in the price.”  

Jo Thornley, who has been conducting all the business buyer surveys for BusinessesForSale.com said: “We are seeing the same pattern in each country, namely that buyers in a strong cash position but who are still looking for those bricks and mortar businesses, are looking for opportunities to maximise their investment. It can be good news for distressed sellers of pubs, restaurants, hotels and other businesses affected by social distancing restrictions.”

Qazi adds: “Any business plan template should clearly highlight the COVID-19 impact on revenue forecast wherever the revenue stream in order to gain trust and confidence. The goodwill of a business will have changed dramatically as a result of the crisis and banks will certainly be critical of it.”

For more information, about what BusinessesForSale.com does to connect entrepreneurs and first-time buyers of businesses and franchises – go to http://www.BusinessesForSale.com



Anthea Taylor

About the author

Anthea Taylor is Content Producer at Dynamis and writes for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other industry publications.

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