June 2— With a major economic downturn and businesses hit particularly hard from the COVID-19 pandemic, many family business owners are asking: What does this mean for the valuation of closely held businesses that have no readily observable market prices? It stands to reason that the same uncertainties sweeping through the public markets would also impact smaller private companies in even more profound ways, with travel, leisure, and retail businesses being especially hard hit.
Before the budding of spring flowers, a new coronavirus emerged from obscurity to a worldwide pandemic known as COVID-19. After the World Health Organization declared the coronavirus a global pandemic, defensive measures imposed by governments brought economies to a standstill and sent markets into nosedives. Coupled with the effects of falling prices of crude oil, the equity markets in the U.S.