Bailey Routzong

Closing deals during the Covid-19 lockdown

There’s good news even during a pandemic

Virtually all owners in our industry are assuming that during this period they cannot exit their business at or anywhere near its pre-pandemic market value.  SHOCK—that assumption is not correct! Bailey Routzong is each day engaged with owner-sellers and buyers in the process of creating new transactions.

We do report that most owners-potential sellers we are in contact with are in mourning that they did not exit their businesses during the last few years when the marketplace was so favorable for sellers. And certainly, the current chaos in the marketplace does make transactions more difficult to cobble together; however, dramatic change always generates new fissures in the marketplace for “creative opportunities”, and that is happening now at Bailey Routzong.

The fissures in our marketplace have allowed access to many new buyers looking for acquisition opportunities not previously accessible for them—they are driven to capture these opportunities while the traditional industry buyers are not buying schools.  Bailey Routzong has focused its efforts on connecting with this newer buyer pool, while also pre-qualifying and vetting them.

Now, here’s the GOOD NEWS in more detail!

What are the ramifications of the pandemic and business lockdown on an owner’s business and related real estate’s value?  Common sense tells us all that a school that today is “temporarily closed” or has 25 children (“essential” worker children) attending does not have the value at this moment that it did pre-pandemic. However, if that school operator can substantially back-fill their enrollment/revenue to pre-pandemic levels over a period of time, a major portion of that prior value can be recaptured. Bailey Routzong has created special transaction structures to accomplish just that outcome!

What does this mean to school owners?

In short – fear not! Bailey Routzong can deliver a qualified buyer and transaction structure that can recapture a great portion of your pre-pandemic asset values.  If you are ready for a resolution to your business scenario, we are only a phone call away.

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