Lower Business For Sale Inventory Drives Premium Prices for Q1 Acquisitions
A year after the COVID-19 pandemic new business owners and entrepreneurs are still eager to purchase premium, top-performing businesses. In fact, the median sale price of businesses in the first quarter of 2021 were 30% higher than the previous year.
The Q1 median sale price was $350,000, which is the highest median sale price Biz Buy Sell (link here) has seen since they started collecting this information in 2007.
Currently the circumstances in the market are such that businesses that performed well during the pandemic are hard to find in the marketplace. Those that didn’t perform well, or floundered, are waiting for business to improve.
Demand for these high performing businesses continues to rise and, while supply is short right now, we believe that that will change as concerns over tax increases will cause some owners to sell in 2021.