2023 Recession Plans

searcher profile

January 15, 2023

by a searcher in New York, NY, USA

Its impossible to turn on the news and not hear talk of a recession. I understand that some industries will be better off than other but I'm curious as to how everyone is thinking about the future.

How is the looming recession impacting your search and/or investment choices?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I am hearing this question a lot these days. I really think it depends on the industry. Although higher interest rates, higher employment costs, and inflation are impacting all industries in one way or another, in general manufacturing still seems to be very healthy. I think the biggest areas of impact at the moment are going to be on the retail side and with housing and related construction. But who knows if the recession is deep.

In order to protect themselves I am seeing customers pulling back on multiples and taking a harder look at industries and trends. But I am still seeing transactions moving forward. In fact I have had some customers think there are deals out there right now because some sellers want out before going through a recession after having survived the Great Recession, and Covid.
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Reply by a searcher
from Babson College in Fort Collins, CO, USA
Now is a great time to be looking for a business to acquire! Just as were starting to see the prices of houses coming down, we should also be seeing the prices of businesses comign down. True, many sellers may have yet to come to terms with the fact that their business is no longer going to sell for what they thought one or two years ago, but the longer it sits on the market, the more they will have to think of bringing the price down. I think some of the best buying opportunities will be coming up in the next 6 months!
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