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 “Consumer M&A: Acquiring the Competition” discusses several types of acquisitions and the value that each can deliver. As seen in the 2008-2009 economic downturn, times of crisis can lead to opportunity in the M&A space.
Types of acquisitions explored include:
- Acquiring the Competition – This deal type involves acquiring potential challengers to your business.
- Established Brands – This deal type involves acquiring larger, more established brands in your industry.
- Horizontal Expansion – This deal type involves expanding into adjacent businesses.
A recent article from Bloomberg Tax entitled “INSIGHT: Impact of Covid-19 on Middle-Market Private Equity M&A” discusses the ramifications of the COVID-19 shutdown on middle-market private equity mergers and acquisitions.
The shutdown has presented challenges including:
- Many sellers have put their sale plans on hold or at least have slowed things down
- Buyers are struggling to complete due diligence as in-person activities have been limited
- Access to debt markets is tighter
- Risk allocation and valuation have become key issues
Despite these challenges, buyers are seeing favorable deal terms and valuation gaps are being bridged through a variety of deal features. And with challenges comes opportunity.
A recent blog post from Exit Strategies Group entitled “M&A Advisor Tip: COVID-19 Era Due Diligence Part 1” explores potential questions that may come up during due diligence regarding staffing in relation to COVID-19.
The workplace as we know it has changed and business operations have had to adapt to survive COVID-19 challenges. This will likely come up during the due diligence phase of selling a business. Questions may arise regarding layoffs, key employee retention, compliance, health and wellness considerations, safety plans, and remote working.