Business For Sale Market - Post COVID-19
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.
So, where do things stand and what is the outlook?
❖ Our six pending deals are all currently on extensions with the involved buyers, sellers, and lenders indicating a readiness to close as soon as the world begins to return to normal. Deals with SBA lending involved – SBA is indicating a readiness to close as soon as the involved business can indicate its weekly revenues have returned to at least 75% of that pre-COVID 19 shutdown.
❖ 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 firstname.lastname@example.org .
- John A. Naayers