Buying a Business in a Pandemic

It might seem outlandish to buy a business in a pandemic, but there are some strategies to deploy in times like this that can work for both parties.

In a nutshell, the challenge for the Buyer in these times is uncertainty. The challenge for the Seller is limited Buyers, so how can we mitigate uncertainty?

Let's take a page from landlords: Some landlords work on a percentage lease. They charge a low base rent and then a percentage of sales on top of that base. This addresses both parties' concerns -- if there is a downturn, the retailer doesn't pay as much, but they share in the plentiful times.

So, if you make an offer during a pandemic, a recession, or other uncertain times, offer a base price and a percentage of future revenues (I choose a revenue percentage instead of earnings since the Seller has no control of your expenses).

A percentage offer may not be what the Seller had hoped for but in these times, it's better than a lowball offer, or none at all.

*Please feel free to share There are many people considering alternative careers either by choice or not.

Here is one example of a purpose-driven business that is about a meaningful lifestyle: A dog-training franchise in Chicago -- the Seller doesn't know what to ask for the business in these times, but would consider all offers.