Transaction Activity Slowed by COVID-19
After several years of record high transaction activity, there has been a lull in the buy-sell market due to COVID-19. Bass Sox Mercer noticed a steep decline in transaction activity around the time state governments started instituting “stay at home” orders. Existing transactions were terminated and potential transactions were put on hold. The lack of activity, however, is not due to a lack of sellers. Fear of a long recession and tight capital markets have kept most buyers at bay.
Starting in early June, we saw an increase in buy-sell activity, and we expect a steady increase in the coming months. We do not, however, expect the market to return to pre-COVID territory anytime soon. Although the fear of a long recession and tight capital markets has passed, many buyers are wary of a “second wave.” And more importantly, buyers are not sure when consumer activity will get back to normal levels, especially in major metropolitan areas.
Despite the down market, Bass Sox Mercer has closed 19 transactions to date, involving motor vehicle, motorcycle, powersport, and heavy truck dealerships. The dealerships were located throughout Alabama, Connecticut, Florida, Georgia, Minnesota, North Carolina, North Dakota, South Carolina, and Washington. Bass Sox Mercer also has active deals in 5 of these states and in 7 other states.
If you need assistance with a buy-sell opportunity or a real estate transaction, please contact a member of Bass Sox Mercer transaction team.