The Coronavirus Pandemic: Identifying Valuation Effects and Planning Opportunities for Private Clients

As you might expect, MPI is currently in close consultation with its clients given the volatility in financial markets, economic uncertainties, business shutdowns and other factors. The values of many privately-held businesses and investment partnerships, like most asset classes, have declined as a result of the crisis. The steepness of this decline, the duration of the economic effects of the crisis and the path to recovery will differ by industry and company position. To that end, we are hesitant to draw too many conclusions from price changes indicated by broad market averages, yet also know that the negative impacts on companies and individuals are far and wide. One thing that is clear is that the current environment has created a unique wealth transfer opportunity for many high-net-worth individuals and business owners. When the time is right, strategies should be discussed with the counsel of a trusted and experienced advisor.