The restaurant industry has been hit hard by stay-at-home orders, social distancing, and other safety precautions necessitated by the novel coronavirus pandemic. The impact on daily operations and the economy generally have, in turn, affected larger deals such as mergers and acquisitions (M&A) in the industry. With the complete lifting of COVID-19 restrictions and their effect on the economy nowhere in sight, parties to restaurant M&A transactions are adjusting to the COVID-19 world by negotiating and incorporating into M&A agreements new ways to deal with the uncertainties created by the pandemic. Understanding how the pandemic has changed the approach of both buyers and sellers is essential for protecting each party’s interests.

The purpose of starting or operating a business is to create revenue by serving some public need. While many businesses follow a business plan, surprisingly few business owners have an exit strategy. Whether your business is the expression of a passion, a service to the community, or an investment, at some point you may want—or need—to sell or close it. A business exit strategy provides helpful guidance for operating and winding up your involvement in the business cleanly and smoothly.

Almost all businesses in the US have felt the pinch (or downright punch to the gut) from the coronavirus pandemic. Arguably, the restaurant industry has felt the negative effects of the shrinking economy as deeply as any market sector. Popular restaurant chains are closing locations at an alarming rate, and others are modifying business models to meet changing customer demands. As some restaurants adapt and succeed despite the challenges posed by COVID-19, others are looking for ways to stay afloat—or to create an exit strategy. Whether combining operations or buying the assets of a closing business, restaurant M&A is an opportunity for all types of existing and aspiring owners.

The pandemic brought much of the world to a standstill at some point in 2020, and the hospitality industry was not immune. Restaurant, hospitality, and entertainment venue closures and changes in service have put many of these businesses in a tailspin. With restrictions easing, business owners and operators need help dealing with new hospitality industry challenges. Finding sound information from reliable sources and guidance is essential to help your business adjust to changing times and get back on its feet.

Businesses across the country have clamored to take advantage of the Paycheck Protection Program (PPP or P3) offered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The COVID-19 pandemic resulted in an economic shutdown that left many businesses struggling and workers unemployed. The opportunity for a low-interest or even forgivable loan to continue operations during the shutdown was too good to overlook. But subsequently-issued regulations have given shape to the program in unexpected ways, in some cases limiting forgiveness.