BUSINESS SALES REPORT SPRING 2021

An active environment has emerged this spring in the business sales market as buyer website traffic online has exceeded pre-pandemic levels. Reasons for this active environment include record low interest rates, PPP loans and other government-assisted options that have helped fuel increased activity.

There are plenty of investors searching for investments. Many of these new investors were formerly in the corporate world. In addition, private equity investors need to put capital to work while many buyers are finding growth through acquisition.

However, deal volume is not back at a pre-pandemic level especially locally in the NYC Metro Area. However, some regions such as Florida have shown year over year growth. In demand businesses continue to be liquor stores, home improvement businesses, gas stations, convenience stores, pizzerias, e-commerce websites, anything medical related, manufacturers, and distributors.

Business sale inventory will continue to grow and diversify over the rest of the year. As more businesses are able to fully open up and benefit from pent-up consumer demand, more businesses will regain value and enter the business sales marketplace.

Buyers will continue to outnumber sellers for the foreseeable future, as an emerging trend is that most business owners would like to rebuild their business value prior to exiting. If successful, this will help owners to maximize business valuation and overall marketability. Though with pent-up consumer demand driving an increase in spending, and fewer competitors amid businesses not surviving the pandemic, recovery may come faster than expected. Thus, if you are ready to sell now and can receive a suitable price, it may be best to enter the market before competition increases.