EBITDAC Assessing the Impact of COVID-19 on Lower Middle Market Valuations

Since 2017, our firm has issued an annual report on the independent sponsor sector. This year, we decided to devote our entire report on the impact of the pandemic not just on independent sponsors, but also on their portfolio companies, investment strategies, deal structures and valuation. The survey was conducted in May 2020 and reflected the views of 112 independent sponsors. The independent sponsor perspective is particularly relevant to understanding what is happening in the lower middle market right now, during these unprecedented times. Why? Because independent sponsors tend to acquire, own, operate, grow and eventually divest small and mid-size businesses – and those are the businesses that make up the vast majority of the U.S. economy.

We have already issued a series of key findings from our 2020 survey, most of which were discussed during our COVID-19 Independent Sponsor Survey Results – Key Findings webinar. With a focus on valuation, and how to value a business in today’s environment. This presentation includes a discussion about the disparity between value and price; the impact of COVID-19 on lower middle market valuations and which deals are getting done; approaches to valuing a business now and post-COVID; and, on performance, both positive and negative, of various types of businesses and sectors.

View the webcast recording here:

View the presentation here: