SURVEY REPORT Q2 2019
One-third of Business Brokers Say Tariffs Are Impacting Business Owners Selling Their Business
Earlier this year, the National Federation of Independent Business reported about one-third of its membership has had negative impacts as a result of recent trade policy changes with Mexico, Canada or China. And our survey garnered consistent results.
In the 2nd quarter, roughly a third (32%) of Lower Middle Market advisors reported one or more of their sellers had been affected by tariff issues, and nearly a quarter (22%) of Main Street business brokers say the same. Of those small business owners affected, some aren’t putting their businesses on the market, while others are lowering their asking price, as a result of recent trade policy changes with China, Canada, and Mexico.
Of the affected Main Street brokers, nearly half (49%) say they’ve had one or more potential sellers decide not to put their business on the market due to tariff issues. Another 55%
say they’ve had sellers reduce their target asking price. . . .