Around the Web: A Week in Summary
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A recent podcast episode from The Sustainable Business entitled “Selling Your Business During Pandemic – Barbara Taylor” discusses selling a business and buying a business amidst the current pandemic.
In the episode, Barbara Taylor explores topics including:
- The M&A world during the pandemic
- Why it’s an excellent time to buy
- Who can help you buy or sell a business
- How the pandemic impacts the business sale process
A recent article from JD Supra entitled “Is Now a Good Time to Acquire a Business? Opportunities and Risks for Buyers in the Era of COVID-19” discusses the effects of COVID-19 on buying a business.
Current economic conditions have led to a more favorable environment for buyers who are well-positioned to make an acquisition. Deal volume is down and many previous buyers have put their activities on hold, meaning there are more opportunities for those who are ready to buy. There are also a significant number of businesses that have been negatively impacted financially and may be motivated to sell.
Despite these favorable conditions for buyers, there is also ongoing economic uncertainty and associated risks. Buyers should take a measured approach with heightened due diligence, thorough risk identification, and strong documents and recourse. Plus there are unique considerations related to CARES Act loans.
A recent blog post from Viking Mergers & Acquisitions entitled “Key Mistakes to Avoid When Selling Your HVAC Business” discusses critical pitfalls that can impact the value of your HVAC business and hurt your chances for a successful sale.
These key mistakes include:
- Failing to set the business up to operate without you (the owner)
- Putting all of your eggs in one basket and not diversifying your services
- Having inaccurate or incomplete financials
- Not having a 5 year plan
- Allowing past due receivables to get too old
- Not getting key team members on board with working with a new owner