From the Trenches - Interview With California Business Broker Randy Hendershot
Randy Hendershot
Current market perspective from the trenches of the business acquisition & sale industry
Sit-Down Interview With Business Broker Randy Hendershot
What are your thoughts on where business acquisition & sale market activity is heading over the next 3-6 months?
If the last quarter of 2020 is any indication of business for sale activity in 2021 the marketplace will be very active. Both individual and strategic buyers are looking for strong businesses to acquire.
Due to the Pandemic, we are seeing quite a few buyers looking to exit the corporate world and become their own boss.
What do you see as the most significant SELF-IMPOSED threats out there that could hurt the market for business acquisition & sale and small business activity in general?
Business owners need to continually update their monthly financial records keeping them current and in order for buyers to have a complete understanding of the business.
We also continue to see examples of high customer concentration issues creating challenges for buyers to move forward with a purchase.
What Makes Evolution’s Approach so Special?
What do you see as the top three things the government needs to do to support the main street business acquisition and sale opportunities for small business owners through the remainder of this year?
Allow small businesses to make their own decisions in creating an environment in their business that makes customers feel safe. If they do this customers will return. I have the utmost faith in entrepreneurs in that they will figure out how to be successful during the Pandemic.
Provide financial assistance options if need be for qualified businesses.
Stop changing the rules weekly and monthly on how businesses need to act during the Pandemic.
What do you see as the top three reasons to BUY a business in 2020?
Take control of your future by being your own boss and not relying on someone else.
Banks are eager and willing to lend in this environment with reasonable rates.
Automotive Service shops continue to perform well during these hard times here in Northern California.
What are some of the questions a business owner should ask when choosing an advisor to help buy a business or work on exit planning to help navigate through this challenging stretch?
Sacramento and Bay Area business owners should dig into the details on how a business broker will market their business to find buyers.
Other than the numbers, which are very important, how will a business broker "package a business" to help buyers understand the true story of the business?
3 Value-Wasting Mistakes to Avoid When Hiring a Professional Business Broker
How would you rate the current political environment related to small business growth, business acquisition & sale?
2/5
What are your thoughts on transaction terms for buyers & sellers in the current market?
We are seeing buyers seeking to have more of a percentage of seller carry in business for sale deals in the Northern California market place.
The main reason is the "unknown" as we navigate forward in the Pandemic. The challenge is showing buyers how the business is performing during these times compared to pre-Covid-19 times.
A month by month comparison for 2020 compared to 2019 is a must to help tell the story.
Why Should I Hire a Broker?
Thoughts on business valuations in today's market?
The key to valuations in the current Sacramento and Bay Area market place is how fast a business comes back to pre-Covid-19 times.
If a business is getting back to normal, valuations will most likely remain close to the pre-Pandemic times, yet the terms will most likely be more risk-averse for buyers.
Businesses still affected by the Pandemic may be hard to sell and if so will most likely see a drop in the sales price. If your business is performing better during the pandemic you may see some increase, but more likely have much more buyer interest which can help with both price and terms.
