The US Economy and Business SalesBusiness Business Information General Business
Posted by Jennifer Smith on
Three quarters down and one quarter to go for 2020…we can do this! If you’re exhausted with running your business, think COVID is a dirty word, and you’re disenfranchised with all things related to our economy and this upcoming circus of a presidential election: You’re not alone. There is a tremendous amount of fatigue out there, but there IS some positive news from professional forecasters as we enter into the third quarter.
We recently attended an Entrepreneurship and Economic Symposium hosted by Southeast Missouri State University where Kevin Kliesen, an Economist with the Federal Reserve Bank of St. Louis was the speaker. A few key takeaways from Mr. Kliesen’s presentation:
- Seemingly overnight, the pandemic halted the longest US economic expansion in history. While the resulting recession was swift and deep, it may also be the shortest on record if the recovery continues.
- While there was a seriously abrupt spike in unemployment, the rate is falling much faster than expected thanks to the aggressive and unprecedented response by policymakers.
- Weekly business applications are going up indicating that start-ups are ginning up and business buyers are positioning for acquisition. This matches what we are seeing in terms of buyer interest in businesses we have for sale.
- Assuming we don’t have any more major upsets on the horizon, things appear to be generally headed in the right direction related to real GDP, unemployment, and inflation. Interest rates remain at historical lows which will help fuel the entrepreneurial spirit we’re seeing emerge. So while there are still some wild cards that could pop up, take heart that better times might be around the corner. We’re still having productive strategic conversations with buyers and sellers and activity is strong. If you would like to have a confidential conversation with us about your business, contact us.