Client and Prospective Client Message: Business Sellers

by Corey Vanderpoel

If you are a business owner who is currently at market or had planned to go to market in the next 12 months, there are some steps you can take now amid crisis to prepare yourself. The expectation is that the health and economic situation will ultimately bounce back. When it does, we want to be poised to transition from crisis to recovery and then to growth.

In addition to keeping yourself, your family and employees safe, here are a few actions you can take now to stay prepared:

  • COVID Addback – If there was ever a definition of one-time and unusual, coronavirus is it. We anticipate including the impacts of COVID-19 as part of EBITDA adjustments in the foreseeable future. These could be complex to calculate and substantiate, but your recordkeeping now will be very helpful to support such adjustments. Try to keep chronological records of lost contracts and orders, non-productive labor costs, losses on materials, and pricing changes all of which may be a result of the COVID-19 crisis.
  • Demonstrate Creativity and Flexibility – As Epictetus wrote, “It’s not what happens to you, but how you react to it that matters.” Gather your management team to discuss if there are any new product lines or adjustments to existing products, that you can offer at this time. Assess all angles to continue to generate revenue or cut costs in ways that could mitigate the impact of COVID-19 on your business.
  • Stay Current with Your Industry – Stay close to your industry and any trends that are evolving out of this situation. You may find ideas to help sustain your company, or insight into how your world may be changing.
  • Be Prepared for Post-Pandemic – Be ready to capitalize as orders and customers return to a more normal pace. In reference to the above, give thought as to how your business will operate differently in the aftermath of this global shutdown.  Be prepared that buyers will want to see some recovery back to normal levels to meet price expectations.

Through it all, Taureau Group’s commitment to our clients is unwavering. We are always available and would welcome you to get in touch. As such, to take advantage of these unique times, we’re working with business owners on a longer-term basis to prepare their businesses for sale and analyze the impact of COVID-19 with no added cost of our services. Please contact us with any questions or concerns you may have.

Taureau Group Overview

Taureau Group is an independent boutique investment bank providing merger and acquisition services to lower middle-market companies throughout the world. Principals of Taureau Group have successfully completed hundreds of M&A transactions for a wide array of clients in virtually every industry. Transactions typically involve closely-held and family-owned businesses, and private equity firms with transaction values ranging from $10 million to $150 million. Taureau Group combines the capabilities of large, bulge-bracket investment banks with the service and responsiveness of the middle-market.

Please contact any of our experienced M&A professionals here to discuss how COVID-19 may impact your M&A strategy.