Few of us will ever have experienced such a rapid turnaround in fortunes – as a client said to us, “a month ago the issue was whether we might expect an EBITDA outcome of £2.8 or £3.0m, today we are trying to plan if we will still be around in several months’ time.” Others are more fortunate, business has soared – one we spoke to has had to stop taking orders!
However COVID-19 has affected you, we, at Corbett Keeling, are keen to support you in any way we can. If you were planning to exit in the next three years, please be encouraged; poor trading in these unprecedented times does not necessarily put an end to your plans. Although the economic effect of the spread of the virus will sadly impact many firms severely, we see the current situation – unless “lockdown” becomes elongated to many months – as different to the events in 2008. Whereas the downturn in 2008 was triggered by the collapse of the banking sector which, structurally speaking, underpins our entire business environment, we see the effect of the spread of COVID-19 as an enforced, and temporary, restriction on the demand of consumers and businesses. Fundamentally, we believe the structures in place in the UK for doing business remain strong and positive, and once the restrictions placed on our society from the spread of COVID-19 are alleviated, we expect demand from consumers and businesses to return to levels seen a month or so ago.