Does a Looming Recession Change the Timing for Selling Your Business?

On June 17, 2022, The Wall Street Journal cited a survey by The Conference Board, which gathered responses from 750 CEOs and C-suite executives. According to the survey:

• 60% expect an economic recession in their region within 12 to 18 months

• 15% believe their region is already in recession

  
  

Economic uncertainty is now a constant headline. From rising interest rates to a volatile stock market, the question on many business owners’ minds is:

Does a looming recession change the right time to sell my business?

How Buyers Are Reacting to Recession Risk

Private equity groups and family offices we regularly speak with are already adjusting their strategies in response to what they see as an inevitable downturn. Their concerns include:

• The cost of capital increasing due to rising interest rates

• The resulting downward pressure on business valuations

• A shift in acquisition focus toward recession-proof businesses

  
  

This creates an important distinction: not all businesses will lose value. In fact, some are becoming more attractive to buyers.

What Makes a Business Recession-Resistant?

While no one can control the broader economy, we at CRI M&A Advisors help clients recognize whether their company operates in an industry sector that typically weathers economic downturns well.

Industries Buyers Are Targeting in a Recession:

• Technology & IT Services (including SaaS)

• Quick-Service Restaurants (QSR)

• Healthcare Services – especially senior care and behavioral health

• Staffing & Employment Services – where workers shift across sectors

• Pet Services – veterinary, grooming, boarding

• “White Van” Services – HVAC, plumbing, electrical, etc.

• Janitorial & Facilities Maintenance

• Energy & Infrastructure

  
  

This list isn’t exhaustive, but these sectors historically show resilience and buyer demand during recessions.

Is Now the Right Time to Sell?

For some business owners, the current economic environment introduces hesitation. For others, it may be the ideal opportunity to sell into sectors seeing high demand.

CRI M&A Advisors offers a complimentary market assessment to help you evaluate your timing. There is no obligation — only insight.