30.7 million strong, American small business owners were at the forefront of feeling the impacts of the COVID-19 pandemic in 2020: loss of revenue, reduced budget, temporary closure, wage reductions and strategic pivot. According to Guidant Financial, 41% of business owners said they implemented innovative or disruptive changes in response to the pandemic. Meanwhile, AM&AA reported that 48% of mergers and acquisitions were delayed, 12% canceled, and 14% saw their valuations drop as a result of the pandemic.
Amidst the storm, Pacifica Advisors helped 6 business owners negotiate lower middle market transactions in California between last quarter of 2020 and the first quarter of 2021. According to Paul Spradling, Managing Partner at PA, the pandemic stress created opportunities both for the Buyer and Seller. Strong management teams showed resilience, reacted quickly and even accelerated revenue growth which was rewarded by the Private Equity firms sitting on the sidelines with ample of dry powder. Empathy, open and transparent dialogue, and sophisticated deal negotiation metrics allowed our brokerage team to deliver on our promise: to maximize the value for your business.
“PBB’s institutional expertise was fundamental in negotiating the sale of my business and helping me navigate these uncertain times, without any significant delay or change in valuation metrics.” – Eric Hall, CEO, EH&A.