Another COVID-19 Surprise A New Seller’s Market
“Energy and persistence conquer all things.” – Benjamin Franklin
The devastating Coronavirus Pandemic has precipitated an economic decline and slowed M&A transactions. While pundits compare the recent 2020 Coronavirus 2007-2008 Great Recession of 2007-2008, they are dissimilar.
The differences are important in a current business sale.
The Great Recession was a financial crisis that caused a near collapse of our banking system. When banks fail, the economy is not far behind. Before our economy shut down earlier this year, the USA was the envy of the globe, a shining star leading with economic growth, record low unemployment, and high private business valuations.
M&A deal activity was aggressive at the beginning of the crisis. Then our World changed. With the initial shutdown starting in March 2020, M&A transactions slowed to a crawl. That crawl has changed to a stampede.
Capital drives the world.
According to The Wall Street Journal in July, Private Equity Groups have $1.5 TRILLION in available capital for acquisitions. The Janas Team receives daily emails, newsletters, phone calls, and texts from well-funded buyers eager to compete for acquisitions.
So, what does this mean to you, the business owner?
Many Exit Strategy Plans are on hold in 2020. Owners whose businesses performed during the pandemic can attract upwards valuations. Companies that remained profitable, but profitability declined are also targets. Buyers are lined up to make competing offers.
Our point is simple. Despite the pandemic, an unprecedented abundance of investment capital is seeking to acquire your business. The time has come to Exit.
Next step? Give Janas a call.
To understand your alternatives, check your calendar, and we will set up a ZOOM call or phone chat.
We can tell you in minutes exactly what we see and hear.