2019 was an impressive year for the buy-sell market, and the start of 2020 appeared to continue the trend. January and February, which are normally slow months, saw unusually high buy-sell activity. But, by the start of March, the buy-sell market came to a screeching halt. General uncertainty over COVID-19, “stay at home” orders, and tight capital markets caused buyers to take cover.
By the beginning of the third quarter, there was finally an uptick in the buy-sell market. The general consensus was that the buy-sell activity would continue to gradually increase, but that it would take one or two years before the buy-sell market returned to pre-COVID levels. Once the fourth quarter results are tallied, however, that prediction may turn out to be wrong. Fourth quarter buy-sell activity has been extremely high.
Bass Sox Mercer closed 49 transactions in 2020, which is nine more than it closed in 2019. But for COVID, the number of closings would have been north of 50. The closings took place in Alabama, Arkansas, Connecticut, Florida, Georgia, Kentucky, Minnesota, Mississippi, Nebraska, New York, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Virginia, and Washington. The closings involved the following brands: Acura, Audi, BRP, Buick, Cadillac, Chevrolet, Ferrari, Ford, GMC, Harley-Davidson, Hino, Honda, Honda Powersports, Kawasaki, Kia, Infiniti, KTM, Mercedes-Benz, Navistar, Nissan, Polaris, Porsche, Subaru, Suzuki, Toyota, Volkswagen, and Yamaha
We expect 2021 to be an active buy-sell year. Bass Sox Mercer has a large number of transactions that will carry over to 2021, around 5 of which are expected to close in January.
If you need assistance with a buy-sell opportunity or a real estate transaction, please contact a member of Bass Sox Mercer transaction team.