Getting Penalized for Great Results During the Pandemic

Many Sellers are finding that buyers, whether strategic or financial, are discounting exceptional 2020 results as fluke or non-repeatable because of consumer behavior in the new normal. But there's a cure for this 'EBITDAC Adjustment' and we can help!

Video Transcription

Hi there, Kirk Michie with candor advisors. We're going to title this episode, the “EBITDAC” cure. 

What do I mean by that? 

If you're a founder who has a business that did substantially better in 2020, partly or largely because of the pandemic and people staying at home, and your revenues and your profits were way, way up year over year from ‘19 to ‘20, a lot of the private equity firms that are shopping for your kind of business are going to discount substantially your 2020 results on the belief, rightly or wrongly, that those results won’t continue.

So, the best cure for that is to hold off. Get the first quarter of 2021 done, maybe even the first half of it, 2021, done to show that you're at or above 2020s results. And that 2020 was not, as a lot of these private equity investors think, a fluke or only a result of the pandemic. Kind of prove that 2020 was part of a trend by completing the first half of 2021, and then go back out to market. 

So, if we can help with that or anything else, please navigate over to the website, www.Candor-Advisors.com and reach out. And have a great week!