In The Press

The pandemic has significantly impacted businesses all over the world. Different industries learned to adapt and change their business models to survive. The food and beverage industry in particular found it challenging to stay afloat during this trying time. According to the National Restaurant Association, the industry experienced a drastic economic free fall in 2020: 87% of restaurants reported a 36% drop in sales, and 17%—over 110,000—have shut down in the U.S. alone. The good news is that things are starting to look up: In their mid-2021 State of the Restaurant Industry Report, food service and restaurant sales projected a rise of 19.7% from 2020.

These days, entrepreneurs are opting to buy existing businesses rather than building their own from the ground up. Acquiring an established brand is like operating a well-oiled machine—an easier endeavor to leverage growth compared to starting from scratch. However, while the risks are significantly lower, several factors still come into play in determining the success or failure of your business—and buyers should always remain cognizant of these factors before purchase.

Calculating your business value is a vital part of success. It's even more important than the revenues as they do not matter without profit generation. What's more, it's an indicator of how much money you have left to invest back into your business--which is key to future growth. If you're planning to apply for a bank loan, having a solid net profit is also important as banks use it to assess the suitability of the loan and your ability to repay. Not only can it give you a clear picture of your business' standing from a financial standpoint, but it can also offer your investors the confidence that their money is moving in the right direction.

The manufacturing industry is known for its flexibility and adaptability in any economic conditions. When the pandemic hit in 2020, manufacturers were quick to reshape their business models and adapt to consumer demands. This is why manufacturing businesses are attractive to business buyers not only for their nature of resilience but also for their innate innovativeness. But just like any other industry, manufacturing also experienced some challenges that would forever change the way these types of businesses operate.

The pandemic significantly impacted several industries across the world, resulting in catastrophic losses. While several businesses learned to adapt and changed their operating models to survive this economic threat, others have experienced massive dislocation and disruption, causing some to completely shut down.

You’ve been thinking and talking about it with family and friends and you’ve decided that it could be the right time to sell your business. According to one report, small business acquisitions have gained excellent traction, outperforming pre-pandemic levels in the fourth quarter of 2021.

As an M&A professional, one of the challenges I often experience is evaluating add-backs and adjustments (also known as normalizations). Too few could result in a business being undervalued and too many can result in an inaccurate business valuation.

Selling a business can be a once-in-a-lifetime event, and selecting the right business broker is pivotal to ensure a positive experience throughout this process. According to the U.S. Census, over half of the prospective business sellers in 2020 were Baby Boomers who were already at their retirement age; as with anyone looking to sell, they may require professional business brokering guidance to sell their businesses.

Covid-19 has placed the world in flux — everything has changed. The way we socialize, work and do business. There are many online business owners who want to exit but are worried this isn't wise due to the pandemic. However, this is not the case. Online businesses provide clear opportunities for investors looking for risk-averse, recession-proof investments, and they can deliver that value for them.