SEARCH DURING COVID
Hello everyone! I just wanted to ask about your experiences during the past year due to COVID19. What have been your most challenging situations? Raising funds for your searches and/or getting investors on board during this past year? Meeting up w(or even identifying) potential sellers? I'm looking forward to hearing from you!
During the search phase, I've found that many owners, he COVID economic and health crises are a catalyst for thinking about life outside of the business, including transition/retirement. However, many, especially those that had adverse impacts due to COVID, are putting off selling until things stabilize. Additionally, companies that grew or were stable during Q1-Q2 2020 are somewhat emboldened to ask for higher valuations due to fewer sellers, lower rates driving asset prices up, and recent data showing their business can weather economic turbulence. On the plus side, most people put off travel/in-person meetings until closer to or after an LOI, so it's been easy to stretch the search capital.
I expect to see a major impact during the equity raise as Daniel noted above. Search investors have always focused on predictable repeat/recurring revenues, which has only increased post-COVID. I'd recommend spending additional effort on cohort analysis and similar exercises pre-LOI.