M&A buyers are still looking in the midst of uncertainty. However, buyers will be mindful of added risks caused by COVID-19. These technology-related questions are likely to come up in future Due Diligence: • Do employees have the ability to work remotely – without frustrating workarounds? • Does the IT… Read More »COVID-19 Era Due Diligence Part 2
In Q2, median final selling prices came in anywhere from 89% to 100% of the pre-set asking price or internal benchmark. Lower middle market companies in the $5 million to $50 million range achieved the highest values at 100% of benchmark. https://deltabusinessadvisors.com/market-pulse-2020-q2/ Learn more about Delta Business Advisors at: https://deltabusinessadvisors.com or… Read More »Where Are Business Values Trending?
Previous lows last reported in each sector: • <$500K: Q3 2014 at 22% • $500K-$1MM: Q3 2013 at 36%; Q1 2020 at 32% • $1MM-$2MM: Q1 2014 at 42% • $2MM-$5MM: Q2 2014 at 51% • $5MM-$50MM: Q3 2014 at 63%; Q1 2020 at 55% According to the IBBA and… Read More »Seller market sentiment at record lows
“You cannot climb the ladder of success dressed in the costume of failure.” -Zig Ziglar Ziglar dropped out of college in 1947 and moved to Lancaster, South Carolina where he took up a job as a salesman with the WearEver Cookware company. Ziglar was promoted to field manager and eventually divisional… Read More »Monday Mojo 17
Seller-market sentiment dropped to record lows this quarter, falling well below levels seen during the last eight years. This is the first time in Market Pulse history, dating back to 2012, that seller-market sentiment dropped below 50% in the lower middle market. According to the IBBA and M&A Source 2020… Read More »Market Sentiment Drops to Record Low
Owning a business is usually a very big part of the owner’s life. But over time, managing the business can take a toll on the owner. There are so many issues to take care of — employees, customers, products, services, equipment, leases, etc. And decreasing energy level can make it… Read More »Tip “I’m totally ready to sell, but my business isn’t!”
SBA relief efforts incentivizes buyers to move ahead with business acquisitions. Per the SBA website, “the SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current … as well as new 7(a), 504, and microloans disbursed prior to September 27, 2020.” This… Read More »Motivated Buyers Fueled by SBA Incentives and Need
The July Alignable survey found that over ½ of business owners were fully open with the same products and services as pre-COVID-10. Alignable has focused on Coronavirus Impact on Small Businesses Owners across the United States and Canada. The latest poll was conducted during the week of July 27, 2020… Read More »More than ½ Businesses are open!
In terms of current events, advisors were most likely to say that COVID-19 and state shutdowns were having a negative impact on the market, however advisors also rated riots, protests, and election activity as dampening forces. According to the IBBA and M&A Source 2020 Q2 Market Pulse Learn more about… Read More »COVID-19 Not the Only Factor