Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from BizBuySell entitled “The CARES Act May Allow You to Buy a Business for Effectively No Money Out of Pocket” discusses how buyers can benefit from recent legislation.
The CARES Act was signed on March 27, 2020. Part of the CARES Act involves the SBA paying 6 months of SBA loan payments for current SBA loans and new SBA loans closed before September 27, 2020.
This is a significant opportunity for buyers which could produce savings of tens of thousands of dollars on a single transaction. Given the September 27 deadline, buyers should start looking for a business to purchase now or very soon.
Click here to read the full article.
A recent article from Small Business Trends entitled “57% of Small Businesses are Optimistic Despite COVID-19” explores the results of the recent State of Small Business Report from Facebook and the Small Business Roundtable.
86,000 small businesses were surveyed about COVID-19 related topics. Highlights of the survey results include:
- 57% of businesses are optimistic or extremely optimistic about the future of their businesses
- 31% of businesses had stopped operating as of April 2020
- 79% of businesses have changed and adapted in some way to cope with COVID-19
- 76% of businesses that remain open worry about cash flow
- 11% of businesses that are still operational expect to fail in the next 3 months if current conditions continue
Click here to read the full article.
A recent article from Forbes entitled “Important Updates To The PPP May Equal More Money For Your Small Business” discusses an updated Payroll Protection Program FAQ fact sheet recently released by the SBA.
The fact sheet features 17 pages, 46 points and several reference documents. Some of the highlights include:
- PPP loans under $2 million are eligible for forgiveness without proof of financial hardship
- Partnerships and seasonal employers may be able to increase their loan amount
- There is still money available and businesses can still apply for a PPP loan
Click here to read the full article.
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Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from Inc. entitled “How Change Offers New Opportunity for Buying a Business, During and After Covid-19” discusses how interest rates, SBA loan program changes, and other current conditions are presenting big opportunities for buyers.
Interest rates have dropped to historic lows in response to the economic conditions brought on by the Coronavirus. In addition, the Cares Act introduced a debt relief program which subsidizes the first six months of principal, interest and fees on SBA loans. These factors bring huge savings for buyers.
Businesses available for sale may be in a variety of situations. Some owners may simply need to sell and opt for an asset sale which can be a more simple process for the seller and buyer. Some businesses, especially those that are essential, are doing well. And others have positioned themselves for post-pandemic growth opportunities. This all adds up to a variety of options for buyers.
Click here to read the full article.
A recent op-ed from CNBC entitled “How to sell your business and retire during the coronavirus pandemic” discusses what business owners that would like to sell are facing and how they can position themselves for a successful sale.
The Coronavirus pandemic has put businesses in a variety of positions. Some essential businesses have seen an increase in sales, resulting in increased value and demand. On the other end of the spectrum, some businesses have been forced to drastically reduce their operations and must make a plan to reopen and position for a sale.
The author, an experienced business broker, offers the following recommendations to prepare for a sale in the next year or two:
- Get clear on your overall goals
- Clean up your financial practices
- Identify risk factors that could derail a sale
- Battle-test your operations
Click here to read the full article.
A recent article from Axial entitled “Corp Dev and COVID: What 3 Deal Pipelines Look Like Now” checks in with corporate development professionals at strategic acquirers to see how COVID-19 has impacted their activities and plans.
Isaac Lund of National Express explains that they are primarily in a holding pattern with a decrease in demand for their services. Deal-making has also slowed as they wait to see how the current situation progresses. However, they are looking towards signs of recovery which will help get deal-making back on track.
Craig Rodwogin of NAES Corporation discusses how they are an essential service and continuing operations. As an essential business, they are not seeing large delays in deal-making. Minor delays are expected to last only a couple of months. Replenishing the pipeline has become more challenging, however.
Monte Salsman of Winsupply explains that their numbers are down a bit, but not a lot because all of their businesses are essential. One large deal was completed during the pandemic, and the rest have been put on pause until there is a better sense of how things will play out. They are also looking at how to approach sale prices and seller expectations.
Click here to read the full article.
A recent article from Axial entitled “Consumer M&A Activities & Opportunities — COVID-19 Virtual Roundtable” recaps the week 10 Axial virtual roundtable discussing the current state of consumer sector M&A.
Ten industry experts gathered virtually to discuss the following:
- Accessing relevant industry data
- What transactions are most likely to close in the second half of the year?
- Valuations when the new normal is not actually the new normal
- E-commerce and Amazon
- New-customer acquisition
- New hurdles for valuations
- Getting a deal done
- Transaction structures and risk sharing
- Due diligence considerations
- Government loan programs
- Distribution channels
- The virtual deal process
- Grocery stores
Click here to read the full article.
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Dealing with COVID-19’s Economic Impact: Planning and Communication are Key
There are many things that you should be doing to deal with the COVID-19 pandemic. At the top of the list is to be proactive. Now is the time to be thinking about how best to position your business after the economy has returned to something near normal. Now is not the time for self-pity. In fact, not preparing for the relaunch of the economy will cost you.
In David Finkel’s recent Inc. article entitled, “10 Things Every Small-Business Owner Needs to Do to Deal with the Impact of COVID-19 on Their Business,” Finkel outlines the 10 key steps business owners should take immediately. Finkel is the author of 12 business books and CEO of Maui Mastermind business coaching company.
There is no way of knowing how long the COVID-19 fueled economic downturn will last, and that means time is of the essence. Business owners, regardless of their particular sector, need to prepare as though the economy could relaunch tomorrow.
Finkel’s 10 Things:
- Take steps to protect your staff and customers from getting sick.
- Tell your customers what safety steps you’re taking.
- Educate your staff on how to stay healthy at work and at home.
- Engage in scenarios planning to deal with how markets could change.
- Enlist vendors and suppliers for help. You should ask them to negotiate payment terms.
- Take steps to plan out your cash flow.
- Open a dialogue with your management team.
- Go on the offensive and look for opportunities.
- Get your team together and brainstorm.
- Be sure your key leaders communicate in a united fashion.
There are definitely some commonalities amongst these 10 important steps. You’ll notice that communication and education are at the heart of most of these points.
There is a lot of fear and uncertainty out there. More than almost any time in modern history now is the time to communicate. All business owners should be advised to communicate with their customers, clients, suppliers, staff, and management team in a clear fashion. Effective communication based around a consistent and logical message can help to reduce fear. The fear sections of the brain are driven by our primordial ancestors’ dread of the unknown lurking in the darkness. Part of being a good leader is to reduce those fears whenever possible.
Another common thread is planning, which includes looking for new opportunities. Whenever there is chaos and fear, there are also opportunities. You should be looking for those opportunities, whether it is improving your own business practices or looking for other companies to buy.
Good communication and planning can help you navigate these choppy waters. Planning for the recovery from COVID-19 pandemic could be the difference between staying in business and going out of business.
Copyright: Business Brokerage Press, Inc.
The post Dealing with COVID-19’s Economic Impact: Planning and Communication are Key appeared first on Deal Studio – Automate, accelerate and elevate your deal making.
Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from Axial entitled “Structuring Transactions Post-Coronavirus — COVID-19 Virtual Roundtable” offers highlights from a recent virtual roundtable with 10 middle-market deal professionals discussing how deal structure has been affected by the Coronavirus.
Key topics discussed include:
- How are perspectives on virtual diligence evolving?
- Lenders taking more conservative posture
- For existing deals in the pipeline that are sponsor deals, are debt providers going back to the sponsor for additional equity contributions to get deals done?
- Private equity firms focused on maximum flexibility
- Dynamic between buyers and sellers re: difference in valuation conversations prior to and after coronavirus
- New standards for environmental health and safety due diligence post-COVID
- How are sellers dealing with repricing and retrading of deals in progress?
- Sellers are showing flexibility and understanding of the circumstances
- Need for lengthened diligence period
- How much diligence can be done virtually? Will you close a deal without meeting in person?
Click here to read the full article.
A recent editorial from The Washington Post entitled “A Misguided Assault on Mergers” discusses proposed legislation that would temporarily limit mergers.
The Pandemic Anti-Monopoly Act would prohibit all large mergers, mergers involving hedge funds, and mergers involving private equity firms until the FTC determines that consumers and small businesses are no longer under severe financial distress.
This proposal could have a major impact on mergers large and small, severely limiting deal activity for an unknown period of time.
Click here to read the full article.
A recent article from business.com entitled “10 Need-to-Know Tips for Selling Your Business in 2020” offers helpful advice for business owners considering a sale. Whether the sale is imminent or a long ways away, it’s best to start planning sooner rather than later for this complex process so that you can set yourself up for success.
The article discusses the following 10 tips:
- Determine your business value.
- Seek legal and financial expertise.
- Keep it quiet.
- Hire a professional business broker to help you with listing your business for sale.
- Set a realistic asking price.
- Get the paperwork in order.
- Separate your personal expenses from the business.
- Get your offers in writing.
- Tidy up your curb appeal.
- Tie up loose ends.
Click here to read the full article.
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How to Make Remote Teams Accountable
One of the many, many changes that COVID-19 has ushered in is the extreme uptick in people working remotely. Social distancing has made working from home a necessity for millions.
The technology that is allowing remote working to take place has matured greatly in the last decade. Today, it is possible for team members to work from virtually any location. Of course, as with most technologies, there is a potential downside. Accountability can become a significant challenge with remote workers. Of course, the more remote workers you have at a given time, the greater the potential challenges will be.
Many businesses are struggling with the phenomenon of remote working, as it is something new for them. Under normal circumstances, large numbers of employees working remotely simply wouldn’t happen. In a recent article, “The Right Way to Keep Your Remote Team Accountable,” author Elise Keith, Co-Founder and CEO of Lucid Meetings, explores the key steps businesses should take to help ensure that their employees stay on target while working from home.
Starting Slow
Keith believes that for remote working to be effective that there are 4 major mistakes that should be avoided. One of the biggest mistakes that employers, especially those unfamiliar with remote work, make is that they demand too much productivity right out of the gate.
She points out that remote teams can, in fact, be very productive and even outperform their in-office counterparts. Summed up another way, remote work can be extremely productive. Keith’s perspective is that businesses should “identify the highest priority tasks right now and relax the rest.” Business owners need to remember that they are not the only ones under stress. The simple and undeniable fact is that your employees are feeling the stress of COVID-19 as well.
Getting Good at Working Remotely
The second major mistake she points to is that people are assuming the current pandemic situation is temporary. Other crises will occur in the future, and it makes sense to be prepared. As she phrases it, why not “get good at working remotely?” Teams with good remote working skills are proving to be rather resilient right now.
Being Open to Technology
A third mistake she points out is businesses shouldn’t disallow the use of non-approved tools. In short, now is not the time to worry too much about what software tools people are using. Instead, she suggests creating an expedited process for the adoption of new tools. If your team finds a new tool that boosts productivity, you should consider buying it.
She astutely points out, “Software costs pale when compared to the costs of lost opportunity.” At the heart of this point is the fact that now, more than any time in decades, is the time to set aside restrictive thinking and become more open-minded and flexible. After all, your number one goal, and the number one goal of your clients, is to stay in business until the pandemic has passed.
Staying Flexible
Keith’s fourth mistake centers on management’s design to dictate hours and response times. Remote work is, by its nature, going to be more flexible. Trying to micromanage every move digitally is simply not a savvy move and will hurt morale.
Instead, she feels businesses should opt for having a daily meeting via phone or videoconference with the team. Additionally, she puts forth the idea of having a one-on-one meeting with every team member as well.
For many businesses and many situations, remote work may be the “only game in town.” Trying to carry on business as usual is only going to cause headaches for everyone. Remote work can be highly effective for you, especially when used correctly.
Copyright: Business Brokerage Press, Inc.
The post How to Make Remote Teams Accountable appeared first on Deal Studio – Automate, accelerate and elevate your deal making.
