What are the best types of businesses to buy in the post COVID-19 world?

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April 26, 2020

by a searcher from University of California, Los Angeles - UCLA Anderson School of Management in Los Angeles, CA, USA

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from Southern Methodist University in Sarasota, FL, USA
To echo the home improvement market comment -- I took a management position with a family-held residential remodeling company (think high end window and door replacement) in order to learn the day-to-day operations of a $10M revenue service company, prior to attempting to find one to acquire. We have never been busier than we are right now, and pretty much since COVID started. We have had to hire multiple new crews, extend our lead times to get to new jobs to almost 10 weeks, and push our order-to-delivery time until the last minute, since our warehouse could no longer hold any more inventory. That being said, this is a result of everyone being home from work, with free time to supervise these projects, and a ton of left of discretionary spending, since they cannot go out to eat, go on vacation, etc. Customers are simply using that money for home improvements (not just windows and doors, but roofing, HVAC, fencing - it's all booming right now). It will not hold post-COVID though, as that home improvement money will just go back to restaurants, bars, new cars, and vacations. It will create an interesting revenue spike for a year though, which I am sure will cause sellers to overvalue the business if they do decide to sell.
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from New Bulgarian University in Walnut Creek, CA, USA
I would invest in a business in the manufacturing sector, that operates entirely in the US or the European Union and potentially manufactures the goods cheaper than similar business that manufacture in China, most likely through automation. There is a big negative sentiment towards China now and I would not be surprised if not only consumers begin paying more attention, but also for governments to start subsidizing companies who put manufacturing in their countries (especially in the EU). The manufactured goods though should be of significant importance - medicine and other healthcare related materials, key technology, etc. For example, Ravensburger would not make that list.
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