October 22, 2020

Valuations in the Time of Covid

Estimating a business owner or organization’s value is critical for growth and for exit or transition strategies. At the recent virtual event The Road Map: Valuing and Positioning Your Business for the Next Destination, Co-Founder George Nemphos joined other panelists to discuss not just the fundamentals of valuation, but also what’s changed in light of Covid-19.

Nemphos explained how mechanisms and levers are being added to transactions to aid sellers and buyers during this unique time.

More takeaways from the event’s second panel — Valuation: What Does it Look Like Now?:

  • Fundamentals of valuation include future growth potential, cash flow and sustainable revenue, and sector specifics. 
  • Historical performance matters, but the future matters more.
  • Valuations are as much an art as they are science.
  • It’s important to analyze what Covid-19 has done to the structure of a business – meaning its relationships and contracts – and identify where pressure points in that structure have impacted clients.
  • The low cost of debt is helping some buyers be more aggressive.
  • Business owners should always be aware of their valuation – whether or not it’s growing at a consistent rate is often the best scorecard to evaluate.

“When we know where a client is headed with the painting, we help with what goes on the canvas.” — George Nemphos



Kimberly Prescott (moderator) – Founder and President, Prescott HR

Charles L. Maskell – Founder/Managing Director, Chesapeake Corporate Advisors

John Morgan – Managing Director, Verdence Capital

George Nemphos – Co-Founder, Nemphos Braue


Watch the full panel below:

More highlights and videos from the event:

Panel 1: Detours on the Road to Transitions

Panel 3: What Do Transactions Look Like with all the Current Detours?

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