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
Watch the full panel below:
More highlights and videos from the event:
Panel 1: Detours on the Road to Transitions