Smart Business Magazine, July 2020

22 Smart Business July 2020 Business owners who can keep their companies afloat during a global pandemic will be quite attractive to investors when the economy begins to grow again says R Louis Schneeberger executive chairman of Proformex Is your product or service selling right now Schneeberger says That shows you have some stickiness that people need what you do Youre not a nice to have Youre a need to have Investors are going to look at those companies and say This is a company thats going to be around no matter what Now is the time to focus on profitability rather than revenue growth says Schneeberger Demonstrate the strength of your business and youll put yourself in a better position to make a deal when the opportunity arises Schneeberger spoke with the Smart Business Dealmakers podcast about how investors view the current business climate and some of the dynamics that could shape dealmaking in the post pandemic economy Below are excerpts from that conversation HAS THE COVID 19 PANDEMIC GIVEN INVESTORS SUCH AS YOURSELF PAUSE AS TO WHERE YOURE MAKING PLAYS IN THE MARKET Definitely I think me as an investor or other investors that I talk to theyre certainly hanging on right now As you look out in the near term its as opaque as its ever been You look out three months six months from now and nobodys ever been through this before So whats it going to look like Because there is so much uncertainty I just dont think youre going to see as many deals or anywhere near the number of deals you normally see HOW SHOULD COMPANIES VIEW THE OPTION OF MAKING A STRATEGIC PIVOT IN THE CURRENT BUSINESS ENVIRONMENT Pivoting is something that startups do all the time Obviously 180 degree turns are pretty rough but certainly theres a new paradigm out there There is a new way to look at your company and there may be areas that you can go at Take for example the near term revenue opportunities on smaller deals versus the big deals which take a long time and require a lot of capital I see some startups focusing on these smaller deals where you can get revenue quicker versus the big home run that may make you a lot of money down the road These smaller deals can bring cash in extend your runway and lower your burn WHAT ELSE CAN YOU DO TO STRENGTHEN YOUR POSITION COMING OUT OF AN ECONOMIC DOWNTURN As a buyer looks at a company theyre going to be looking at what did the Smart Business Dealmakers is a weekly digital newsletter featuring the top business leaders in the Cleveland M A scene Sign up today at www smartbusinessdealmakers com cleveland Proformexs Lou Schneeberger Focus on the fundamentals now make a good deal later DEALMAKERS COVID 19 Pandemic Because there is so much uncertainty I just dont think youre going to see as many deals or anywhere near the number of deals you normally see R LOUIS SCHNEEBERGER EXECUTIVE CHAIRMAN PROFORMEX BY DUSTIN S KLEIN AND MARK SCOTTcompany do during this timeframe What did leadership do to safeguard the company What action steps were put in place to protect and improve the company Work on the company more than normal versus in the company What seems to be new now is that leaders have a bit more time to focus on where they are and where theyre going Make the best use of this opportunity You normally dont have this luxury To listen to Lou Schneebergers and other Smart Business Dealmakers podcasts visit www smartbusinessdealmakers com podcast