What Now? Part II
As we shared in Part I, today’s chaotic economic environment is unlike any other. We looked at reasons to sell or to wait. Since then, we’ve sheltered in place, laid off staff, conducted virtual meetings and started to face the uncertainty of an upcoming election. Despite the uncertainty, we are starting to see some trends. The big picture: it may take 6-24 months to recover.
What about YOUR Industry?
Generally speaking, 32% predict revenues will remain flat or increase, while 52% predict declining revenues.
The least-affected industries – anticipating only about a 25% decrease—are predicted to be:
- Business Services
- Real Estate
The most-affected industries— suffering a 50% or more decline – are likely to be:
- Food and Beverage
What About YOUR Company?
It’s generally believed there will be a post-pandemic M&A surge. If so, how does that affect the value of your company?
- If your business has lost less than 20% of its demand it may likely retain its value
- If your business is in one of the least-affected industries, buyers should be interested
- $1.3 TRILLION sits on the sidelines, waiting to be deployed by buyers/investors
- If your business has already prepared for a transition, it will achieve a higher value
At The Salazar Group we sell businesses. We optimize value by implementing our tested, proven formula, regardless of economic climate. As one of Orange County’s most uniquely experienced middle-market business brokers, we specialize in selling businesses $5-$50M. What distinguishes us is our “both sides of the desk” experience – notable 30+-year career in senior positions at companies including Procter & Gamble, Baxter Healthcare, CB Richard Ellis and Oracle. As a trusted advisor and award-winning broker, we have successfully closed dozens of major transactions totaling more than $1 billion. This rare and relevant skill set leverages our ability to clearly understand businesses in transition.