Importance of Small Businesses!
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
General
WIN-WIN: Earnouts / Forgiveable Promissory Notes
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
Where did the Lion’s share of PPP go?
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
YOY Median Multiple for Business Sales: 2014-2020
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
I Received PPP, Should I Keep it? 8 True answers = Yes
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
Where Are Business Values Trending?
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?
Local AZ Survey Results from the East Valley Chamber of Commerce Alliance (EVCCA)
Today, May 8, the East Valley Chamber of Commerce Alliance published its survey results from Business Owners responses as of April 20, 2020. Finding Summary: 47% of respondents said they’ve implemented employee furloughs or layoffs, while just over one-third (35%) reduced employee hours. Loans and debt relief continue to be top… Read More »Local AZ Survey Results from the East Valley Chamber of Commerce Alliance (EVCCA)
Why choose Delta Business Advisors for selling your company?
May 7, 2020 Why choose Delta Business Advisors for selling your company? This video provides a brief overview of things to consider prior to the decision to sell your business. Contact us at 480-686-8062 to be prepared for the moment that triggers your desire to sell. A shout out and… Read More »Why choose Delta Business Advisors for selling your company?
Q1 2013 to Q1 2020, Seller Market Sentiment
In Q1 of 2020, business brokers and M&A advisors reported similar thoughts on the market, with more perceiving a Buyers’ Market than Sellers’ Market on the horizon. Market conditions dipped only slightly for the smallest businesses valued at $500,000 as this segment is historically a buyer’s market. However, brokers still… Read More »Q1 2013 to Q1 2020, Seller Market Sentiment