I didn’t hire an M&A advisor, but in hindsight it was probably one of the worst mistakes I made! Why didn’t I engage an advisor? I didn’t want to pay out any more of my proceeds and I was already paying a good chunk in legal fees.
Predictions for M&A. Don’t be surprised if the volume of calls from PE firms increases. CEO’s are ready to move forward with their future plans. Valuations will increase even more for companies who did not see a drop in revenue in 2020. Large mega (international) conferences are dead for the near future.
Buyers will pay more for companies that have “recurring” revenue. But what about “repeat” revenue? And what really is the difference? Then, let’s not forget about “renewal” revenue and what value it may still have.
The question most sellers are concerned about which is Capital Gains and the likelihood that they will increase under the Biden administration, or more immediately in 2021.