Impact to multiples due to COVID-19

by a searcher

4 years ago

I am in the process of drafting a few IOIs. What kind of discounts would you apply to prices due to the  COVID-19 at this stage? Neither companies have experienced any significant impact on their business - of course, the jury is still out and many businesses might start to see pressure to earnings in the coming weeks - but given the lack of impact on these companies currently, how should one go about formulating a price range?

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10 comments

searcher from Yale University - School of Management

thanks for sharing

4 years ago | like reply | 0 likes

searcher from Pepperdine University - Graziadio School of Business and Management

I think e-commerce deals are holding strong and have not seen a downward push on valuation. In fact, many sellers/brokers are positioning these businesses as being poised for even more growth, due to what is likely to be a long-term, social distancing effect on society.

4 years ago | like reply | 1 like

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