These are unexpected and unprecedented times. We have so many friends whose companies are completely shut down for the foreseeable future, employees furloughed, and worried about where cash shortfalls will be made up. All of us are faced with tough decisions and big challenges in the weeks and months ahead. The more we can all help each other, the better. Taking care of yourself, your families, friends, neighbors, and communities is more important than anything at this moment. That is priority number one and we are trying to help in every way we are able.
Unfortunately, the Covid-19 pandemic has altered the M&A landscape as well. Some transactions are still closing but the majority are on hold as buyers take a wait-and-see approach. Lenders are focusing on their existing books of business and deprioritizing new opportunities. There are some immediate actions you can take:
- If you have an outstanding business loan, call your relationship manager now and ask for help. Many will.
- If you have a line of credit, pull down the entire outstanding amount. Guarantee that you have access to the cash regardless of whether or not you'll need it.
- The SBA is also providing disaster relief loans of up to $2 million per business. Read about that here.
- New government programs are being introduced daily, both nationally and locally. Consult your advisors to determine which are best for you.
In addition to our traditional deals, we help clients navigate tough times in many ways, including:
- Debt Restructuring / Refinancing
- Short-Term Financing
- Sell-Side Readiness
- Cash Management and Budgeting [Read more about all of these services]
We are also constantly communicating market activity and the current sentiment among capital providers. If we can help in any way, by our services, our guidance, or simply our perspective, please give one of us a call.
Eventually, we will reach the end of this crisis and return to normal. M&A activity will rebound. Private equity firms are still sitting on record levels of cash that they need to deploy, and the investors and companies that believe acquisitions are core to their growth strategies will need the acquisition engines running on all cylinders once things return to normal. If your near-term plans called for selling your business, rest assured that you will still be able to, likely as soon as later this year. If you are in growth mode, ensure that you can weather this storm and position yourself to be even stronger once we reach a recovery.
We wish you the best in these challenging times.
The Caber Hill Team