Today’s markets have some of the same uncertainties as in the Great Recession of 2008-2009. The Great Recession:
- Huge real estate bubble
- Noncollectable mortgage paper that wasn’t going to cure itself
- Precipitous economic decline
The current pandemic, though massively disruptive, is more transitory. Covid-19 will pass and the economy will get well. In the meantime, the United States Congress is progressing toward a $2.0 trillion Economic Stimulus Package. According to many economists, there will be a boom period to follow.
Businesses that are designated as essential services will be least affected including:
- Logistics & Storage
- Medical – Services and Products
- Aerospace & Defense
- Food and Agriculture
- Government Services
- Financial Services
- Chemical, Energy, Public Works etc.
These companies may experience stronger demand for their products and services.
During 2019, Private Equity Groups raised record levels of capital that now needs to be invested. The coronavirus has significantly decreased acquisition closings. For operating companies:
Valuations are high with huge acquisition demand and dwindling supply.
At Janas, we are encouraging Companies and their Trusted Advisors to explore with us preparation to enter the market within the next 60-90 days. Our intent is for our clients to benefit from an ebullient market that is sure to follow the decline of Covid-19.