Figure shows the top issues driving sellers to market, for businesses closed or under contract with enterprise value of less than $2 million in Q3. After labor issues, some sellers are entering the market because cash flow has not returned to pre-COVID levels. Meanwhile, other sellers are entering the market because of their strong financial performance (meaning they’ll likely garner higher values).
Tax concerns also appeared as a contributing factor. Some owners are selling now rather than risk having their proceeds taxed at a higher rate if capital gains taxes increase.
