05/20/2020
How will the Coronavirus
(COVID-19) affect the valuation and sale of small businesses? One of the ways of determining what a business should
sell for is to use the Market Approach. The subject business will be compared with recently sold similiar
type businesses. Several databases are available that record business sales information that is supplied by banks and can
be accessed to find the true market value. Remember that whatever method or combination of methods is used, any business is only worth what a ready, willing
and able buyer will pay and what a ready, willing and able seller will accept. Needless to say most business sales are either cancelled, or
put on hold, for the time being and it's hard to find any usefull information. Most buyers in the pipeline are either hesitating or have changed
their plans and are waiting to see what will happen in the future. Banks are also cautious and have been looking at modifing the
lending terms and closing requirements on any new business acquisition loans. We'll keep you up to date on any new progress in the market
and please feel free to contact us at any time to discuss the current situation. ________________________________________________________________________________________________________________
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