Is it good time to buy some bankrupt businesses ?

[AppMan]

Today I was looking at businesses for sell paper and noticed too many businesses are for sell, reason is clear, they no longer able to pay their bills, some restaurants are going half the price they would normally be sold for.
Is there anyone tried to get some business ? I see the benefit of buying the business for half price, but in the same time I ll be loosing money for unforeseen future since most likely the operations are almost halted.

 

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[Ismail941]

I think it boils down to timing which is COVID19 aka bad timing. So from what entrepreneur angle, yes it’s an opportunity.

Recently I saw an ad about foreclosed real estate home which came down to price $3K with messy stuffs. I am tying to hop on it before anybody does.

Buying a turnkey business would be huge life experience learning and if you do the right due diligence. Most likely the older citizen people are trying to sell business or real estate.

Call them and have a convo with them. See their motives. You know you gotta know your audience avatar which will determine to buy or not.

 

[SEBASTlAN]

I would only do so if I have a certain way to add a lot of value to the business instantly.

 

[WestCoast]

'Half Price' is also relative. It's possible (ne, likely) those businesses would not have sold for the original asking price.

So, yes, they are 'on sale'... but, from elevated sales prices.
Keep that in mind.

--
THAT said, yes, during a crisis is a great time to buy/invest/takeover/start a business.
But, one of my favorite quotes
"the best time to buy is when they're is blood in the streets, even if that blood is your own."


If a formerly solid business, is now struggling, what factors are going into that?
Cash crunch, and that's all?
Customers have moved on?
Non-viable industry now, but one that might return?


If the business had a downturn, and just didn't have the cash to get through it. That's a very interesting situation to me.

If the market has fundamentally shifted, surely much more caution is due.
And if you and the seller don't know the answer to that question, even more of a discount is likely to be considered.

Down markets are not fun, but they provide a useful purpose in the economy.
Struggle produces opportunities. Often massive ones.

 

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[AppMan]

Buying a turnkey business would be huge life experience learning and if you do the right due diligence. Most likely the older citizen people are trying to sell business or real estate.

Exactly , that is why I want to buy one , the spike in businesses for sale is most likely to COVID19 situation. Real estate is booming in my area , so it is not an option

If the business had a downturn, and just didn't have the cash to get through it. That's a very interesting situation to me.

That is the situation of many businesses, however we need to make sure there isn't other reasons.

 

[pkcreates]

It depends on few factors

Personal

Are you interested in the business? If so, how can you improve it and make it profitable?
Do you have knowledge of that Industry?

Business aspect:

As others have mentioned. Do due Diligence, and check past balance sheets.
Try to find out how their reputation is with customers or clients.

Hopefully this helps you decide. Lastly, if you want to and have risk tolerance, go for it. We only have one life.