29 Sep Updates From the Business Advisory Services Industry
In our September 17th webinar, we were joined by an expert panel that included Lisa Riley, the IBBA Chair Elect, Steven Denny, co-founder of Innovation Business Advisors, Steve Mariani, President of Diamond Financial Services and Jim Parker, founder and owner of Boss Group International. These five panelists covered a lot of important ground, including some points that can safely be deemed as surprising. In this article, we’ll take a look at some of the 2020 facts that business brokers and M&A Advisors need to know.
Jim Parker explored the importance of the Mainstreet Lending Program. Parker pointed to the fact that according to Bloomberg News, that there have been only 10 deals finalized in the entire program for the entire United States. In short, this means that there is a whopping $598 billion out of the original $600 billion still to be used. The Main Street Program goes through the Federal Reserve and not the SBA.
Parker feels that it is a must that business brokers understand this program. Those interested in the Main Street Program must already own a business and are looking to acquire another one. The minimum amount for the program is $250,000 but the program can go as high as $35 million. Business brokers should no doubt be letting all their clients know about this important program. The Main Street Program could provide many with a new tool in their toolkit.
Another key surprise for 2020 is that PPP loans are artificially inflating bottom lines for companies that didn’t necessarily need to close at any point. No one could have foreseen this turn of events at the beginning of the year. It is definitely a complicating factor.
Our panelists pointed out that during the last few years many brokers enjoyed record breaking success. There is no doubt that many business brokers found 2020 to be rude awakening. As 2020 comes to an end, it is important that business brokers continue to push on and look to the future. As our panelists pointed out, it is important that business brokers and M&A Advisors don’t use the upcoming election as an excuse and take a “wait and see attitude.” Instead, you should be finding ways, both large and small, to build your business.
Parker noted that brokers should be focusing on making deals happen not just now, but also when the pandemic is over. Now is a good time to take steps, such as redoing your website, or making other changes that can help your business. At the end of the day, it is best to think of 2020 as something of a stress test and look for ways to adapt and make improvements for the post-pandemic world which will eventually return.