Looking for some positivity
So you considered selling your business, now what?
You most likely have concerns if you’ve been considering selling your business recently. Well, I have some good news to share.
I hope this blog finds you well even among the latest Coronavirus fears and our stock market losses. Some are looking at this time as an opportunity to be around their family more and to help others in need. Whether you’re interested in selling your business now or in the future, it’s pleasing to hear that our government is taking action now to get us back on track! I heard from a business valuation expert recently and his thoughts were that the businesses that do survive, will get a break with regard to valuations. He said they will focus on the historical financials and the potential for future earnings and risk once the economy stabilizes. He will disregard 2020 in his business appraisals. They just want to understand that the business can continue as before once the economy gets back on its feet.
I also spoke with two SBA lenders and asked them about their bank’s position on business valuations with the current losses in revenue and profits. One lender mentioned they will take a company’s financials for 2019 and the 2020 interim financial statements up to the end of February 2020 and use these numbers for loan approval. They are looking at the business’ performance just prior to the Coronavirus outbreak. He said if the debt service numbers were good then, they will move forward with new SBA loans now. This is very good news!
Many prognosticators anticipate things to settle down a bit as we continue our social distancing and the thorough and regular washing of our hands. We need to stop the spread of this dreadful disease and most of all, pray for our situation throughout the world with this pandemic, for faster testing, and for a vaccine to come sooner rather than later. I’ve decided fear and worry aren’t going to solve anything and it’s time to be less self-absorbed and more caring for others – especially for the elderly and immune-compromised. I believe God is in control!
I’ve also learned that the SBA has been granted $50 Billion n Economic Injury Disaster Loans for Coronavirus (COVID-19)-impacted businesses. Click here to learn more.
Lastly, Tyler Featherston with NBH Bank mentioned to me today that they can help business owners get three months of working capital with very low-interest rates to help avoid company layoffs if needed.
Keep the faith – we will get back on track!