COVID-19 Resource Center:
Selling Your Business

Start the process now to take advantage when the market window opens. 

Preparing Your Business for Sale

The COVID-19 virus has disrupted world financial markets and supply chains, impacted short-term consumer demand, and injected a high degree of uncertainty into the M&A markets. We expect these conditions will continue until infections peak and the pandemic starts to wane. Prior to COVID-19, however, the economy was generally healthy with good underlying fundamentals, which suggests that current disruptions – while vast and unprecedented – should diminish over time as policymakers and businesses adapt to the new normal. Thus, the M&A markets should reward sellers who are ahead of the curve and use this time to prepare to go to market once the current economic panic subsides.

Reasons Why M&A Activity Remains Strong

After the crisis abates, “first mover” sellers will have an advantage as many owners have currently hit the “pause” button and are taking a wait and see approach to selling. Thus, we are recommending to clients and prospective clients to begin now in preparing their company for sale. Typically, it takes 8 weeks to prepare the marketing materials, financial information, and buyer lists before launching into the market.

Market Conditions

We are bullish on M&A activity in both the medium and long term.

Dry Powder

A tremendous amount of dry powder needs to be deployed (an estimated $2.5 trillion is held by Private Equity funds alone).

Low Interest Rates

We expect a very favorable low interest rate environment and enhanced access to financing (both from commercial lenders and alternative financing sources (i.e. – private credit/debt funds).

Capital Availability

Over the last few years there has been a significant increase in the amount of capital raised for both distressed and special situation funds, further enhancing capital availability.

Need Help Preparing Your Business for Sale?

While the market and economy gyrates, ACT can help quality businesses prepare a professional and compelling message to take to prospective buyers who are hungry to put their money to work.

ACT’s Coronavirus Response Team is available to help you prepare your company for sale and provide additional guidance on opportunities to finance your business. Please reach out to coronavirusteam@actcapitaladvisors.com.   

Contact Us!

Questions on Financing? We can help. 

ACT Capital Advisors

7525 SE 24th St.
Mercer Island, WA, 98040

(206) 486-3400

coronavirusteam@actcapitaladvisors.com

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