• Pandemic disrupts exit plans for many, as buyers flock to high performing businesses
• Transactions spike in Q3 as CARES Act loan forgiveness program expires
• Pent-up supply expected to fuel market in 2021, while federal stimulus drives demand
• Analysis based on 7,612 reported transactions and poll of 2,800 business owners, buyers and brokers

The number of small businesses reported sold in 2020 dropped 22% compared to 2019. This was the largest year-over-year drop since 2009 at the start of the Great Recession when transactions dropped 28%.

A total of 7,612 businesses were reported as acquired in 2020, compared to 9,746 in 2019. Conversely, the median sale price rose 12% to $279,950, with revenue and cash flow reaching record highs, according to BizBuySell's Insight Report, which tracks and analyzes U.S. business-for-sale transactions and sentiment of business owners, buyers, and brokers.

While transactions slowed, the median cash flow of sold businesses grew 10.7% over 2019 to $135,567, while revenue increased 8.2% to $613,341. The impressive financials speak to the quality of businesses changing hands – specifically, the spiking demand for pandemic resistant businesses, while weaker deals remained sidelined.