We (BNO) experienced tremendous success in brokering the sale of businesses and related real estate in 2018 and 2019. The first two months of 2020 continued the trend and we had a half dozen deals teed up to close in March and April. However, as you are well aware, all came to a screeching halt when the US economy was shut down due to COVID 19.
BNO Success Post COVID-19 Lockdown
We have brokered the sale of an electrical contractor, a plumbing company, an auction company, a daycare/preschool, a Petrol/TA Truck Stop Plaza, and even a restaurant since April.
Points Worth Noting
- SBA is ready to close SBA loans as soon as the involved business can indicate that its monthly revenues have returned at least 75% of that pre-COVID-19 shutdown for 3 consecutive months.
- Valuation experts and lenders are indicating that Valuations will most likely carve out or exclude from consideration the COVID 19 period; assuming a business is able to return to a level substantially similar to pre-COVID-19 shutdown.
- Experts are indicating that “essential” businesses that did not suffer a loss of revenue/profit or increased such during the COVID 19 shutdown will have an increased attractiveness and at a higher valuation or multiple level.
- Smaller private equity firms, family offices, and investors in general are forecasted and anticipated to be aggressively seeking business acquisitions post COVID 19 shutdown.
- When you have an interest in confidentially discussing the sale of your business with an experienced business broker/attorney, please contact me at 419-720-5095 or email@example.com.
- John A. Naayers