When things ultimately improve, business owners will want to be valued according to the monthly run rate of the business exclusive of external effects of Covid-19 mitigation. This will minimize the valuation penalty that would otherwise occur if the good recovery months are lumped with the bad into an annual performance analysis.

Most business owner find that their business is worth less than they expected. This can be a rude awakening when an owner’s mind is set on retirement and the travel agent has been added to speed dial.