3 Types of Buyers after Covid-19
EATS Broker talks to 3 Types of Buyers after the Covid-19 pandemic outbreak about buying a restaurant. The conversations we had before Covid-19 were much different than the conversations now. Today’s conversations come with a collection of unknown factors.
Today’s market is buzzing with a large number of buyers and sellers entering the market. Some want to become an entrepreneur while others want to sell a business. According to BizBuySell.com traffic has increased with Buyers and Sellers activity and now exceeds pre-Covid-19 levels. Traffic to the website was up 19% May 2020 compared to May 2019.
Dominique Maddox of EATS Restaurant Broker says, “ it’s a golden opportunity for savvy buyers in today’s market. Restaurants that were for sale at high valuation prices before Covid-19, now need to be reevaluated and the listing price lowered”.
3 Types of Buyers in today’s market after Covid-19:
- Sit on the sideline– these buyers are pessimistic and believe that the worst will happen with the Covid pandemic. These buyers will sit on the sideline to watch and wait. They are waiting to see what emerges next. These buyers will look but will not move forward to purchase.
- The Savvy Buyer– has the Entrepreneur Spirit these are the people looking to buy up businesses at some attractive prices. These are the buyers looking for value at a great price. We saw this in the real estate recession in 2009 and 2010 when prices were low, the savvy buyers were bullish and bought properties.
- The recent unemployed buyer– according to CNBC the employment-population ratio of the number of employed people as a percentage of the U.S. adult population plunged to 52.8% in May. This news means 47.2% of Americans are jobless, according to Bureau of Labor Statistics. As the coronavirus-induced shutdowns tore through the labor market, the share of the population employed dropped sharply from a recent high of 61.2% in January.
With 42 million people out of job, some of those people will be looking to buy a business. These buyers have been furloughed from corporate jobs, or buyers wanting to use their 401K to purchase a business.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at firstname.lastname@example.org. Visit our website at www.EATSbroker.com