May 18, 2020 This week, we focus on both small business and middle-market expectations of the future. Almost 3/4 of middle-market and just over 3/4 of small businesses reported a negative impact on sales. The average expected sales decreases was a -34% for small business and a -23% for middle… Read More »Decreased Average Sales Expectations by End of 2020
On Friday, May 15, 2020, SBA released instructions on how PPP recipients APPLY for the loan forgiveness. This includes the calculation form on page 3. If you have questions, be sure talk with your accountant, sooner rather than later.
Small business is typically defined as a business with fewer than 500 employees. The PPP was created to help small businesses pay their employees for an 8-week period in April, May, or June. Many small businesses were not able to keep employees as there either wasn’t enough revenue to cover… Read More »Small Business Employees: Where are They Located?
Learn more about Delta Business Advisors at DeltaBusinessAdvisors.com or contact us at 480-686-8062 / Lisa@DeltaBusinessAdvisors.com if you are interested in selling your Company. Schedule a time now to discuss your exit strategy https://calendly.com/lisariley. Looking forward to talking with you.
Just over ½ of US’s non-government workers are employed by Small Businesses and just over 1/3 have fewer than 100 employees! Source:www.nytimes.com/interactive/2020/05/07/business/small-business-loans-coronavirus.html
When selling a business, an earnout or foregivable promissory note is a Buyer’s commitment to pay the Seller a certain amount of money tied to future performance after a sale. It bridges a valuation gap between what the Seller wants out of the business or future contracts are expected but… Read More »WIN-WIN: Earnouts / Forgiveable Promissory Notes
Round 1: Midwestern Businesses Round 2: Western Businesses Perhaps one of the early flaws of the program was that funding went to areas that were not as hard hit with COVID-19, in addition to the larger companies that we’ve heard about. https://www.nytimes.com/interactive/2020/05/07/business/small-business-loans-coronavirus.html
In Q1 2020, buyers began to offer lower valuation multiples as they were preparing for a coming recession. Multiples dipped in the lower middle market this quarter, dropping well below market peaks. Historically, multiples in Main Street have varied within about a 10% range. For more information on Selling or… Read More »YOY Median Multiple for Business Sales: 2014-2020
May 11, 2020 In these extraordinary and uncertain times, you may have welcomed the Paycheck Protection Program and been in compliance when applying. However, rules have changed. You must certify that the following 8 facts are true and verifiable. If the Answer is “True” for Each Statement, by all means… Read More »I Received PPP, Should I Keep it? 8 True answers = Yes
Q1 2020 found that overall final sale prices came in anywhere from 90% to 100% of the pre-set asking price or internal benchmark. Lower middle-market companies in the $5M to $50M range achieved the highest values at 100% of benchmark. For more information on Selling or Acquiring, contact us: DeltaBusinessAdvisors.com… Read More »Where Are Business Values Trending?