• Tue, Mar 17, 2020
  • How Does the Coronavirus Affect the Value of My Business?
  • In the short run it could be devastating. Value is a function of earnings times a risk factor. For many businesses, the earnings are down and the risk is high which lowers the value. The good news is the virus is expected to be relatively short-lived and earnings will return and risk will subside. As business appraisers and brokers, we take the long view and this pandemic will likely be considered a non-recurring event. Earnings and risk should return to normal and valuations will do the same. Be smart and be safe in the meantime.