February 2021 Newsletter
Valuations Update for February 2021
At CHV Group, we strongly believe that information is power. By taking a close look at current trends, we are able to further analyze and build on our strategies each month.

Valuations have remained steady after the initial post-COVID dip in Q2 and Q3 of last year, but we may be on the upswing. With the vaccine rollout underway, a strong PMI percentage of 58.7% and Consumer Confidence at 89%, the 2021 outlook is positive. Economic expansion should continue to build over the next couple of months. 


One interesting trend to note: During the Pandemic, Business Valuations have only taken a short dip and have nearly returned to Pre-Pandemic values.

With a likely tax rate increase coming in 2022, it may be time to start thinking about selling your business! CHV Group is here to help with any questions you may have about this process. Get in touch Today!


-To see Median Selling Price/EBITDA, Median Selling Price/Net Sales, Selling Price/EBITDA by Sector click here.
COVID-19 Update: An Important Message on Herd Immunity
"The past five weeks have brought an array of conflicting news on the COVID-19 pandemic, affecting our estimates about when the coronavirus pandemic will end. Margaret Keenan, a British nonagenarian, made history on December 8 by becoming the first person to receive the Pfizer-
BioNTech vaccine for SARS-CoV-2 outside a clinical trial.

Since then, several other vaccines have been authorized for use around the world. Sufficient doses are likely to be available to vaccinate high-risk
populations in the United States in the first half of
2021."

Client Example: Understanding Your Break-Even Point with the Use of Key Performance Indicators.
At CHV Group, we utilize KPIs to evaluate the success of an organization or any particular processes/strategies they are implementing. Recently, we came across a situation where one specific KPI measured our client’s Revenue in relation to Employees. This KPI was implemented as an online Sales measure to track the growth of the clients Online Sales.

After review, we noted that even though overall sales grew noticeably, the bottom line did not change. With this in mind, we investigated the costs of Manufacturing and Customer Fulfillment Costs of their Third Party Shipping/Fulfillment Company. After review, we found that it was a Break-Even Proposition at best due to the cost of the Third Party Shipping Company. 

What did we learn from this situation?

This situation highlights the importance of knowing your BEP (Break-Even Point). This can be done by consciously tracking a number of factors surrounding, new customers, sales revenue, and product net margin in relation to total employee cost. A newly installed ERP System allowed our client to track this data with a simple online dashboard. 

Want to learn more about BEP and how to track individual product profitability? View our full BEP Strategy Guide here.
CHV Group LLC| www.chvgroup.com