M&A In the Time of COVID-19: Is It the Right Time to Sell?

Businesses that were contemplating M&A processes before the lockdown brought on by COVID-19 have had to reassess the environment carefully. Many private equity and investment banking firms saw an initial pause in sell-side processes at the onset of COVID-19. However, launch activity has recently rebounded to pre-COVID levels and appears robust for the remainder of 2021.

Is it the right time for a middle-market company to sell? Here are four factors that could help clients decide whether to move forward or delay launches.

One, the business and recent financial results have not been materially affected by pandemic issues. While there is no exact metric to use (e.g., the percentage change in revenue or earnings before interest, taxes, depreciation, and amortization or EBITDA), financial performance that has remained in line with pre-pandemic performance or exhibited growth are good benchmarks.

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