The COVID-19 crisis has caused several inconveniences for entrepreneurs, and it has affected many sectors negatively. The strategic decisions made during this time are crucial and will define the future of the companies. However, it is essential to highlight that there are also investment opportunities that have arisen in many sectors as a result of the pandemic.
Is it the right time to sell the business and invest in other sectors, with even more potential?
Sectors with attractive investment opportunities:
The healthcare sector had an essential role during the pandemic. As people are desperately waiting for illness to be cured, investing in firms that are developing treatments for COVID-19 can be an attractive opportunity. Besides, due to social distancing, it is not recommended, or it can be even forbidden in some countries to visit doctors or hospitals in non-urgent cases. This change in regulations and habits have increased the importance of remote medicine, which might catch the attention of investors.
As a result of the increased number of remote workers, we can observe a growth in the markets of cloud services, telecommunications and other services that support the productive work from home. Also, the newest technologies or services like 5G have a great growth potential and can be attractive for investors during the crisis.
Due to the COVID-19 pandemic companies have to continue their production with the lowest number of employees possible to follow the rules of social distancing. Therefore, artificial intelligence and machine learning have become more needed than ever before. The companies are forced to innovate and use the newest technologies of automatization to avoid contacts between people, which makes this industry extremely attractive for investors.
Since the pandemic started, the food consumption habits have changed, and companies that react to this change quickly can benefit a lot from it. More and more customers decide to stay at home and cook instead of eating out, which caused an increase in consumption at supermarkets. Not only at the beginning of the quarantine the shops were full of people who bought all the necessary food for long term, but later the customers still considered it more safe to buy from supermarkets than eating out. The closing of the restaurants in many countries supported this trend and even those people who used to go out to eat were forced to start preparing food at home and purchasing from supermarkets.
Those companies that can quickly react to the increased demand for food can benefit a lot from the pandemic. Customers are also more likely to order from supermarkets then before, therefore those supermarkets that have delivery options can be highly attractive for consumers. Therefore supermarkets are one of the clear winners of the crisis.
Also, the demand is increasing for healthy food which has a clear origin and transparent ingredients, and it has a vast growth potential regarding the future. Owing to this fact, the food sector has many attractive investment opportunities for entrepreneurs. The new trends such as veganism and vegetarianism has also gave space for new entrants to the food markets. The growing demand for meat suppliants is beneficial for not only bigger chains, but also for smaller companies which have started to sell these products. Read more about the Alternative Protein Sources market, which can be interesting for investors!
E-commerce is one of the most popular sectors to invest during the crisis. As the pandemic forced customers to leave their houses only in particular cases, even those people have started to order online, who had never done it before. Not only ordering food online but also buying clothes and electro domestics on the internet have become more common during the pandemic. This change in the behavior of customers is motivating the companies to start digitalizing, offer home-delivery services, and provide excellent customer service for their customers.
Due to the increased number of orders online, the fintech companies are some of the winners of the pandemic. If you imagine the high number of online courses, streaming platforms, and other e-commerce platforms, you can understand why fintech companies are more important than ever before.
During the COVID-19 pandemic, many employees are forced to work remotely, which increased the importance of cybersecurity. Unfortunately, the number of cybercriminals, who want to take advantage of the situation, has grown as well. Consequently, the demand for cybersecurity services has gone up as it is becoming more and more essential for firms to keep their data safe. Owing to this fact, it can be an attractive investment opportunity for entrepreneurs.
Overall, the crisis had a negative effect on many business areas, but some sectors had to improve faster due to the pandemic attractive investment opportunities have arisen. Investing in businesses that operate the mentioned areas can be highly beneficial for entrepreneurs as the demand has increased suddenly for these products and services.
At ONEtoONE we have a broad knowledge of the Mergers and Acquisitions sector, as we have participated in more than 1000 mandates. Our company is specialized in international middle-market M&A advisory. We are continuously focusing on improving the techniques to achieve the best possible price for our clients, and we also advise on acquisitions, strategic planning and valuation. We are pleased to give our opinion about company valuation or other aspects of a possible corporate operation. If you need an advisor while buying or selling a company, contact us.
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