According to a recent BizBuySell quarterly report, the number of businesses sold in 2020 was down 22% compared to 2019. 2020 had started with a strong-business-for-sale market with a good supply of profitable businesses available for the next generation of buyers. The pandemic changed all of that and put all of transactions on both the sell and buy side on pause.
As the pandemic and lockdowns wore on, the market became impatient. By June, demand for well performing businesses rose as the market sorted out pandemic resistant businesses and weaker ones. Particular interest was shown for high-volume delivery restaurants such a drive thru only and pizza stores.
The most interesting takeaway about 2020 is the heightened demand, and premium paid, for businesses that exhibited strong “pandemic resistance”. Examples include fast-casual restaurants, e-commerce websites, and certain good manufacturers. 25% of businesses owners surveyed by BizBuySell say they are unaffected by the pandemic, a nice place to be if you are thinking about selling.
2021 is expected to be a good year to sell or buy a good business. The stage is set for a new wave of buyers seeking either an initial acquisition or an additional acquisition to what they already own. An interesting fact- nearly a quarter of current business owners searching for another acquisition are Baby Boomers; additionally, 30% of new buyers are Baby Boomers. As BizBuySell noted “Clearly, many in this seasoned group (Baby Boomers) prefer business ownership over retirement or as a means of additional income or staying active”. Couple this with corporate refugees looking to own a business and be their own boss and we have a great environment coming together for business sale or purchase.
What To Do?
If your business is doing well, get your financial records in order. Talk with a business broker to find out what information will be needed about your property & business to position your business to attract the widest possible interest. Your broker may well have a list of active buyer prospects to present your business opportunity to for consideration. There is always a market for solid businesses with good records to support the asking price.
BizExit Brokers & Advisors can help guide you on either the sell side or the buy side. Our initial consultation is no obligation, free of charge. This will be a great year to sell, contact us to get started. www.bizexitpro.com