COVID-19 Update

By Generational Equity


Dear Insight subscribers, 

We wanted to give you our perspective on what is top of mind for many business owners these days – the COVID-19 (CV) situation.

During uncertain times like these, it is important to remember that the underlying fundamentals of our economy are thankfully strong and should give us the resources that we need as a society to overcome and defeat the current CV challenge.

Keep in mind that this is not a banking/financial crisis as we faced in 2008. Overall, corporate balance sheets are strong, interest rates are very low, and capital is available for both business growth and acquisitions. Most importantly, the banking system is extremely stable and reserves are well above Federal guidelines. In addition, anticipated stimulus from the Federal and State governments should also bolster the economy.

As for our business, we created contingency plans years ago which guide us as a company and helps us be well-prepared for situations such as this.

If you are a client, rest assured that we are working hard to keep our business operations functioning at a high level. The Company is actively taking steps to ensure the safety of our associates, while continuing to focus on serving our clients with excellence. The importance of planning is paramount for all businesses, which we emphasize in our M&A meetings. The business continuity plans we have in place for situations like this are working well and you should feel no impact.

If you are not yet a client, and are considering what you should do with your exit plans given the current environment, rest assured that our team is ready to guide you forward no matter what the external circumstances may be. The important takeaway is that business owners who begin planning an exit strategy early reap rewards, no matter what external factors are at play. We have never met a business owner that regretted starting the planning process too early.

Although we don’t have a crystal ball, from a business perspective we expect the market environment to be dynamic and potentially volatile over the next several weeks, but we do not expect any long-term impact to the business environment. Again, the underlying macro- economic fundamentals are strong and that, combined with low interest rates and surplus capital, should bolster M&A activity going forward.

Know that we are here to guide you through this time as it relates to your exit strategies. We are continually monitoring events as they unfold and will provide further updates moving forward. Here is a link that you may find useful:

CDC Resources for Businesses and Employers

We wish you, your business, and your loved ones' safety and good health during this time. In the midst of challenges there are always blessings and opportunities. This situation is no different. History shows us that this too shall pass, and that when it does, we will emerge stronger than before.

Your Generational Team