#1 Excess Money Supply
By now (Q1 2021), the money printed by central banks on both sides of the Atlantic has mounted to record-high levels. This money has flowed into the hands of commercial banks and private equity firms who are now panically seeking safe harbors for their [burning] funds.
#2 New Group of Business Buyers
Corporate refugees. Of 14+ million reported as currently unemployed, a small percentage (but large enough to generate demand) are former executives who now need to replace their income and thus are seeking a position of small business owner. Most of them have $500,000 to $1 million to invest and plenty of time on their hands to call on opportunities.
#3 Pandemic-Caused Movement
About 10% of existing business owners in the U.S. are looking to expand or upgrade their location. The high availability of businesses unable to withstand the pandemic is providing a great incentive for acquisitions. Business brokers attribute near 30% of 2020/2021 buyer inquiries to owners looking to expand.
#4 Baby Boomers!
Turns out that 30% of new business buyers are Baby Boomers (born between 1944 and 1964). Many in this seasoned group prefer business ownership over retirement as a means of staying active and influential.
Video: Should You Sell Your Company in 2021? | The Harbour Club
#5 High Demand
Last but not least: it's all about supply and demand. Because of Covid-19 pandemic situation, many business owners believe now is not a best time to sell, so they hold off. This makes the market attractive for owners that do decide to offer their profitable and crisis-proof company for sale. And because there’s now less competition in the business-for-sale marketplace and majority of companies are not doing well, businesses still with positive returns stand out from the crowd, and may be desirable for buyers.