Covid effect on results

by a searcher from INSEAD

2 years ago

How to deal with company results that were affected by covid? Would you consider such a company transactional and if so how to normalise for covid effect? Same question would apply to multiples in industries that were affected by covid

1 like
279 views
27 comments

professional from University of Southern California - Marshall School of Business

Posted this elsewhere: Falling prices? Coming soon to the company you want to sell or buy?
Will what's occurring with real estate values migrate to pricing SMBs? "Housing Market Shows Cracks With Price Cuts in Pandemic Boomtowns"

"No city exemplifies the mania of the Covid-era U.S. housing market better than Boise, Idaho, where prices have surged by more than 30% in the past year. But in a sudden reversal, buyers are now the ones with power. The result: Prices are running up against the reality of local economic fundamentals."

Hmmm . . .

Anyone want to comment?

Read more: https://www.advisorperspectives.com/articles/2021/10/26/housing-market-shows-cracks-with-price-cuts-in-pandemic-boomtowns

2 years ago | like reply | 0 likes

investor from IESE Business School

Covid effects are very difficult to evaluate and you can never be sure about them Furthermore it might trigger some tension between you and the sellers. My advice would be to focus on sectors not hit hard by Covid to mitigate variabilities and them use average EBIDA based evaluated on past years + earnout on next two years to assure recovery on covid effects isn't overpaid. Average EBITDA valuation on 4-5 years is IMO the best way to be fare and manage risks.

2 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.