May 1, 2020
While many small business owners are struggling to keep their doors open, others are finding they can no longer get out those doors. An April 1-15th survey completed by 416 business brokers and M&A advisors revealed that more than half of the small and medium businesses (SMBs) on the market are facing cancellations or delays in selling their businesses*.
Business Brokers representing small businesses valued at less than $2 million report 46% of their deals have been delayed and another 11% canceled due to COVID-19. Approximately a third (36%) said their deals remained unaffected, while 7% said they represented a business that had increased in value due to the outbreak.
Similarly, M&A advisors representing businesses valued at $2-$50 million said 48% of their deals had been delayed and another 12% canceled. Only 4% indicated that a business engagement had increased in value.