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Are There Any Seasonalities To Small Business Mergers & Acquisitions?

Are There Any Seasonalities To Small Business Mergers & Acquisitions?

Ever wonder if there are seasonalities to small business mergers & acquisitions, so that you can list it at the prime time?

Please watch the YouTube video here – https://youtu.be/Qxe69C9Qt1w

Unlike Real Estate where majority of transactions go in hibernation in the winter time, there is no real seasonality to small business M&A.  What does matter is how you dress the business and place it on the marketplace for a sale.  We have seen over the past that private equity firms activity strengthens towards the end of the year as they may be sitting on “dry powder”.  So 4th quarter is significantly important for them.  1stquarter does seem like that it slows a bit but then again, if the business is dressed and placed right in the marketplace then it doesn’t matter.  2nd and 3rd quarters are also very ripe as everyone is out and about and looking to sell or buy businesses, longer days contributes to this activity.

Let’s Take A Look At The Figures

As per bizbuysell a leading website for small business M&A, the small business transactions in Q1 of 2019 were 2,504, Q2 was 2,444, Q3 was 2,454, Q4 was 2,340.

Bizbuysell Closed Small Business Transactions
Seasonality To Small Business Mergers & Acquisitions

So you can see there isn’t a real seasonality to small business mergers & acquisitions. I’m not going to go into 2020 because in my opinion this year would be an anomaly.  

2020 Business Transactions Boucing Back
Seasonality To Small Business Mergers & Acquisitions

But you can tell by looking at the activity that the small business M&A activity is bouncing back and fast. I expect this trend to keep on growing as everyone is getting use to this new normal amidst COVID19.

Again, to emphasize, you have to have what it takes to sell your business and the time of the year does not matter, head on over to https://gillagency.co/how-to-sell-my-business-a-step-by-step-guide to read a step by step process in how to sell your business.

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