Business Sales Report Spring 2020

First, hope you and your family are healthy and well amid these unprecedented times.

From a business sales standpoint, a nonexistent business sales market across almost category type in the second half of March and April has paved the way for buyers to re-enter the marketplace in May. The demand for business sales has shifted upward in May although far away from the pre-pandemic levels at the beginning of the year for the New York City Region. Buyers are back as they see value in the marketplace. Llife changes will continue to occur over the next few months. There will be retirement and relocation on the seller side and layoffs and career changes on the buyer side. Therefore, the supply and demand metrics of the market should continue to increase over the next few months as restrictions are lifted.
 
If you are thinking of selling your business, I would advise to enter the market sooner than later to take advantage of fewer businesses on the market and allow a buyer to use the special provision of the CARES Act, if your business is a candidate for SBA financing. This provision states that borrowers of SBA 7a new acquisition loans funded by 9/27/2020 will receive six months of their loan payments (principal and interest) paid by the US government. This is an incredible opportunity to get buyers to purchase a business, as it reduces risk as the economy gradually returns.