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Boosted Buyer Activity Expected Post-Pandemic

By Generational Equity

Buyer Activity Post-Pandemic

During turbulent times like these, it is very important to keep in mind that this will soon pass and when it does, professional business buyers will become very active.  

Why?

Because they know that this will be the time to aggressively expand market share, gain access to new clients, acquire talent, and grab intangible assets.   

Knowing this, I found the recent survey by Sourcescrub of venture capital leaders and private equity firms very enlightening.  

First, not surprisingly, a good share of those surveyed are focusing on managing their current holdings. However, once this crisis has passed, their focus will shift to deal sourcing and deal execution:

So the key to all of this is pretty clear: If you own a business, you will likely be getting called with offers for your company post-pandemic. However, the quality of those offers will vary and only those business owners who have prepared to receive them will achieve optimal deals.  

I know it is really hard for many of us to be positive right now, but we have to take a long-term view. Once the COVID-19 crisis is behind us, it will be vital for business owners to be ready to initiate their exit plans because professional buyers will become very active:

So what can you do today to prepare for the attention of professional buyers?

You really have two options. First, wait for the phone to ring and take the first offer you get. 

Alternatively, and more wisely, you can hire an M&A advisor to guide you along the journey. There is a reason that Generational Equity has been the leading middle market investment bank for the past decade-plus: Our dealmakers are skilled in understanding what buyers are after AND in presenting our clients to them in a manner that allows the buyer to see the valuable intangibles that each brings to the table.

There is an axiom in deal making that has been true for years: Explain the past, but sell the future. This means that your deal team needs to accentuate the future of your business. Clearly, this is hard for many right now. But the future will be here soon, and buyers will be extremely active based on what the findings from the Sourcescrub survey have highlighted.

So how do you prepare your business to capture buyer interest? The optimal way is to hire an M&A advisory firm to help your company to become “buyer ready”. Generational Equity has a proven track record of finding buyers for their clients in all economic cycles - and this cycle is no different. If you are interested in learning how we can help build your business to be buyer ready, please use the following links;

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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