New Paycheck Protection Program (PPP) loan guidance should provide relief to business owners currently selling, business buyers, and business brokers with prospective clients with a PPP loan.
The COVID-19 pandemic has rippled through the U.S. economy, with many non-essential businesses shut down. Yet, some businesses, those we rely on most, are still going strong, and many are thriving.
The market has been disrupted and many businesses are uniquely positioned. With stay-at-home lifestyles and heightened safety precautions, consumer behavior has changed, leading to new opportunities.
As you plan for the next year, make sure you are honestly assessing what is possible in 2021. Ask trusted advisors, co-workers, and even friends these three questions:
1. What two things should I continue to do?
2. What two things should I start to do?
3. What two things should I stop doing?
The M&A market does not usually respond well to times of uncertainty, such as election years. But in Q3 2020, in a time of uncertainty on top of uncertainty, we’re seeing record buyer interest.
The M&A market does not usually respond well to times of uncertainty. Buyers shows signs of hesitation during an election year, uncertain about the future of the economy or taxes. But in Q3 2020, in a time of uncertainty on top of uncertainty, we’re seeing record amounts of buyer interest.
We just conducted an acquisition search for a company looking to grow in a particular Wisconsin metro area. We identified 125 targets that met the buyer’s criteria and reached out to the business owners to assess their interest in selling.
The primary reason that business transitions are not successful is due to unrealistic expectations. The estimate of value is intended to remedy that. By providing business owners and their advisors with accurate information on the value of their business, they can approach a transition more educated and confident the numbers are on their side. Learn more about us!
With all the upheaval in the world right now, you’d expect M&A deal value to take a dip. But recent market analysis shows that’s anything but the case.
When we talk about recapitalization, we’re talking about 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 a part of your equity (usually 70-80%) to a third-party, however some business owners do sell just a minority stake.
SBA relief efforts are incentivizing 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.”