Selling Your Business In The New Normal

Mark Mroczkowski has experienced the M&A process from all sides: seller, buyer, investor, and advisor. His extensive background includes early years as a practicing CPA and later as a CFO for publicly traded companies in Technology, Internet, Oil & Gas industries, and a state university. 

He has been the owner of a CPA firm, an equipment leasing company, co-owner of an independent oil & gas producer, an import-export firm, a beer distributorship in Russia, and an independent consultant to several different industries.

As a dealmaker at Chapman Associates, Mark has been a key advisor in many company sales. Asked how the current virtual world has affected the M&A picture, Mark sees things positively.


An Acceleration of Activity

Mark says that at least for some of the founders and advisors he’s spoken with, it’s been a relatively smooth transition in terms of day-to-day operations. “I think people have figured out how to move in the new normal and figured out what it’s going to take to get transactions done, how to operate their businesses, and how to take care of their employees. I characterize it as an acceleration of activity, both from acquirers and from CEOs considering their future.”

What Buyers Are Doing

The accelerated activity among buyers comes in two categories, according to Mark. “First of all, you’ve got the strategic acquirers. These are the ones that have strong balance sheets and have been acquiring companies as part of their playbook. I think they are very active right now. Some of them might even be seeing things opportunistically.

In the other category are the PE firms managing funds. “I talk to a lot of funds regularly, and I hear things like, ‘Hey, we just minted our new growth fund seven, and we’ve got to put X million dollars to work in the next period.’ I think money is still coming into the private equity funds for acquisitions. “With those dynamics between buyers and investors, there is still capital available that needs to be deployed.”

What Sellers Are Doing

Mark also sees two categories of sellers operating in the current environment. “You have companies that were negatively impacted by the pandemic and COVID. They are trying to figure out what to do next.

And then you have the companies that COVID positively impacted, and they see dramatic uplifts in their businesses. Now’s a great time for them to either recapitalize or potentially sell the majority or the entire company.”

Working From Home

There’s also the work-at-home aspect of the new normal, something Mark also sees with a positive slant. “I think people have more time because they don’t have to travel as much. I think that has had a big impact on people and in a positive way.

They have more time to reflect on what is important to them. They are spending more time with their families, and it’s forcing people to home in on what they want to do going forward with their lives.

And from a business perspective, CEOs are trying to figure out what this changed world means personally. What does that mean for my business? What does that mean for my employees and my stakeholders?”
ABOUT US
Whether you want to sell or buy a business, Chapman Associates provides a personalized service based upon our sixty-two years of successful M&A closings and our relationships with more than 9,300 registered buyers. Chapman is one of the most respected middle-market M&A firms in the country. What makes Chapman different from the competition?
 
• We make a market for our clients.
• We do not charge any up-front fees.
• Our fees are based on completed transactions.
• We devote senior-level attention to every M&A transaction.
• We do not delegate work to junior staff.
• We help clients set realistic goals and then work hard to exceed them.
• We conduct in-depth research and rigorous analysis.
• We prepare all necessary offering materials.
• We have seventeen offices nationwide to serve our clients.