PRICING IN MACRO RISKS (EG, CORONAVIRUS) TO DEALS WITH EXPOSURE?

Hi SearchFunder,

Does anyone have valuation guidance in considering macro-risks (eg, public health, market cycles, regulatory uncertainty) to deals with exposure?

I understand this is a vague question. For context, we’re looking at a travel business that’s already experiencing a dip in bookings and expecting a soft 2020 due to coronavirus in both its Asia and non-Asia products. I’m wondering if anyone has dealt with similar macro-risks and has guidance on how to underwrite the risk appropriately and fairly?

Many thanks,
Connor



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