Andy and Jessica welcome you to another live episode of The Deal Board Podcast. This episode is focused on larger transactions and mergers and acquisitions in regard to the buyer and the seller's sides. Peter Berg and Sunil Shenoy, two of the top experts of Transworld Business Advisors in the Mergers and Acquisitions department share their acknowledge and experience in the matter.
Listing of the week: Albert Fialkovich (Colorado). Niche manufacturing business in Colorado. Agricultural industry. The company has been in business for over 50 years. $3 million in sales. Earnings over $1 million. Great opportunity to expand. Asking price: $5 million. Call Albert at (720) 370-6699 or email albert@tworld.com
Key takeaways:
[3:53] Has the M&A activity slowed since the strike of COVID-19?
[6:49] People are looking for private equity groups as well as family offices.
[8:38] This is not a new normal.
[9:06] Will survivors get a higher multiple?
[12:55] The changes in the lending environment.
[15:04] It is definitely not a seller's market when it comes to funding.
[15:56] PPP loans created a huge amount of work for the lenders.
[17:30] Are newer private groups in a better place?
[19:38] It is a good time for sellers.
[20:28] Timelines now compared to the previous ones.
[23:23] Sunil shares the detail of his most recent deal.
[26:00] COVID-19 has caused a pause in construction.
[27:40] Sunil talks about the current deal dynamics on the buy-side.
[30:42] PPP loans require a lot of diligence.
[31:33] Who wins: buyers or sellers?
[36:53] What are the metrics and factors lenders are looking for?
[39:05] General structure of earnouts in times of COVID-19.
[42:08] Owners' compensations for deals in the private equity zone.
[43:10] The buyers market during the pandemic.
[45:20] What kinds of businesses are being looked out for outright purchases?
[48:27] EBITDA after COVID-19.
[54:45] Deal of the week: Sunil Shenoy (M&A division). One of the largest Christmas tree farms. A resilient business that has been operating for over 40 years. A challenging deal that took over a year. The biggest deal in Transworld Business Advisors history.
[1:07:35] Listing of the week: Albert Fialkovich (Colorado). Niche manufacturing business in Colorado. Agricultural industry. The company has been in business for over 50 years. $3 million in sales. Earnings over $1 million. Asking price: $5 million.
Mentioned in this Episode:
The Deal Board Podcast
United Franchise Group
Transworld Business Advisors
Transworld on Linkedin
Transworld on Facebook
Call us — (888) 711-9018
Email us thedealboard@tworld.com
Contact Sunil Shenoy (M&A division)
Call Albert Fialkovich at (720) 370-6699 or email albert@tworld.com
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