The M&A markets changed almost overnight. Prior to the global COVID-19 pandemic, sellers benefited from historically high valuations and ample sources of capital chasing quality transactions. A feeling of sustainable, strong market conditions supported seller-friendly transaction outcomes. Most prognosticators predicted the 11-year bull market would likely continue for another two years, at least. Consequently, business owners felt the presence of a safety net supporting a future transaction.
The market changed as a result of the COVID-19 pandemic, with the global economy entering a recession in Q2 2020, the duration of which is unknown. This creates uncertainty in the M&A markets in terms of activity, valuations and transaction types. The curve of the recovery has many potential paths, which will have drastically different implications to the M&A markets.
What does this mean for you? It means navigating the current deal environment won’t be as easy. A great outcome isn’t guaranteed. You need expert advice and guidance to navigate these uncertain times. At PMCF, we believe your timeline to exit can still be realized, but it will require an assessment of scenario modeling for your business, and careful metric tracking and preparation in advance of launching a sale process. Our sale advisory service is designed to manage you through the largest or most important business transaction of your life, leveraging decades of M&A transaction and industry expertise at your fingertips.
Selling your business is likely one of the largest and most important transactions of your professional, and perhaps personal, life. So how do you know if you and your business are ready to withstand the rigors of a sale process?
The COVID-19 pandemic saw no bounds to which businesses it would impact – from companies performing at record levels earlier this year to those who were already struggling, everyone is looking for strategies to protect their cash flow.