Doing deals during the pandemic was difficult — for obvious reasons — but not impossible. For example, a merger that closed last July created the state’s third-largest bank. And a Teaneck-based tech company acquired a New York target after conducting some negotiations on a blanket in Central Park. In fact, the M&A market in the region remained fairly robust over the past year an a half, despite the economic downturn and the inability to hold in-person meetings. How did that happen?
In the latest edition of NJBIZ Conversations, Editor Jeff Kanige spoke with Alan Scharfstein, the founder and president of The DAK Group, a Rochelle Park-based M&A advisory firm and investment bank focused on the middle market. Scharfstein explained why values stayed high despite COVID-19, why now is a good time to sell and what potential sellers need to keep in mind as they approach a deal.
“Buyers are looking at two things. They are looking at what the opportunities are for growth and so it really is important that business owner to be able to define how this business can grow from the point that is now to something larger,” he said. “And the second thing is to address those items that we know are going to be big concern points and risk points — pain points for the buyer.”