The reflex reaction, of a virtual shutdown in business sales transaction activity, caused by the coronavirus in March and April, is now starting to ease.
Business brokers have reported some buyers returning to the market over recent months, in many cases to resurrect stalled transactions. There is currently a lower number of businesses listed for sale, as owners are reluctant to put them on the market, thinking that it is a bad time to sell.
The path ahead remains filled with uncertainty, though initial indications are that the Australian economy is starting a recovery phase.
Economic activity contracted sharply in the second quarter of 2020 as Australia went into lockdown mode. Many businesses closed and consumers stayed home. The Federal Government’s “JobKeeper” and “Business Cash Boost” subsidies were put in place, to limit the economic shock.
Even with this government support, the OECD estimates GDP could fall by 5% in 2020 or more than 6% if a second virus outbreak were to occur.
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