Mergers and Acquisitions Buy side
As part of the Economic Aid Act that passed in December (and modified 2/18/2021), the Small Business Administration will make borrowers’ payments for three months on new SBA 7(a), 504 real estate and micro-loan programs. These incentives were available last summer under a stimulus program that expired in September 2020.… Read More »SBA Covers New Loan Fees Plus 3 Months Payments
March 10th 2021 Update to the SBA Payment Relief Program that became effective on 2/19/2021. The SBA determined that they will not have sufficient funding to make all the payments outlined in the December 2020 Cares Act. Below are the following changes: • New SBA 7(a) and 504 loans approved… Read More »SBA CARES Act 2 Update!
The year 2020 was anything other than ordinary and customary. Deal volume was down, like in most recessions. However, unlike other recessions, valuations held strong and even increased for COVID-proof organizations. How are deals getting done in this economy? The capital stack has shifted to greater equity investment, partially by… Read More »Financing M&A in a Pandemic
Datasite’s recent research reveals that the most common 2 issues uncovered in due diligence that causes buyers to withdraw from a deal in due diligence are cybersecurity and data concerns (36%) and financial weaknesses (22%). When asked how often a deal does not progress due to an issue uncovered in… Read More »Top 2 Deal Killers in Due Diligence
One year ago, buyers were looking for talent. Every company we talked to was up against the same problem – there was so much opportunity to be had, but none of the employees to make it happen. So much has changed in a year. Business buyers today are coming to… Read More »M&A Buyers May Need to Move Quickly in 2021
As we continue to take companies to market during COVID-19 period, we’re asking new questions about business response plans and resilience. It’s been interesting to see the different attitudes and approaches. Business owners who are burnt out are very much taking a “sell now and let the next person deal… Read More »When COVID is the “Next Buyer’s” Problem
Recapitalization (recap) is a partial sale of a company that allows the owner to liquidate some of the value they have in their business. Typically, this involves selling equity (usually 70-80%) to a third-party, however some business owners do sell just a minority stake. Recapitalizations are a standard investment tool… Read More »Recapitalization: Pros and Cons
Business owners tend to think about selling when things aren’t as much fun as they used to be. Running a business in the COVID era is anything but fun, and owners are being particularly responsive to acquisition inquiries right now. When growing through acquisition, buyers can take two approaches: reactive… Read More »Plan a 2021 Comeback with Proactive Acquisition
Talk to anyone trying to buy a house right now and they’ll tell you competition is tight. In certain price ranges, buyers need to put an offer in fast (like the day it’s listed fast) and should expect stiff competition. According to data from Zillow, new for-sale listings are down… Read More »M&A Buyers Ramping Up Their Pace
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