The 2021 Federal Budget saw the extension of critical stimulus programs for challenged businesses. But while programs like the Canada Emergency Rent Subsidy (CERS) and Canada Emergency Wage Subsidy (CEWS) have been a welcome relief, many business owners are still anxious about what comes after they phase out in September, absent any further extensions by the Federal Government.
Not all retailers, restaurants, hotels, entertainment venues, tourism operators and hospitality organizations are in the same boat. Some have spent the past year making drastic cuts and changes to overcome pandemic disruptions, while others have had access to resources to weather the pandemic.
Stimulus programs will not last forever and while the odds of surviving beyond 2021 may appear bleak for some, there are reasons to hold out hope. There will be opportunities for recovery and/or strategic transactions for the taking. Borrowing costs are low, deals are getting done, and there are market strategies to consider for buyers and sellers alike.
How your business emerges from the pandemic will depend on the decisions, deals, and changes you pursue today, so here are our top points of reference to help guide your decision making.