If the Economy goes into Recession...?

by a searcher from Indiana University (System)

1 year ago

I'm curious to hear what others perceive as the probability and impact of a looming downturn in the economy. 

1. How severe will it be?
2. What impact wilt it have on Md Market and Lower MM/owner-operator deals?
3. What industries and sectors will be hit hardest?
4. What will the impact be on earnings multiples?

Thanks for the input!

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4 comments

intermediary from Northeastern University

1. How severe will it be? - modest, unless investors lose faith in the USD, and/or we see a major war across Europe (not only Ukraine/Russia) 2. What impact will it have on Md Market and Lower MM/owner-operator deals? businesses under $10MM revenues will likely get hurt first, since they are under-capitalized, and light on management. Thus these businesses will see EV declines 3. What industries and sectors will be hit hardest? Typical recessions will see housing, autos, furniture and other durable goods get whacked, then all who serve them. Hospitality and travel become discretionary. Food/staples can gain. 4. What will the impact be on earnings multiples? Given today;s high multiples this is easy - DOWN.

1 year ago | like reply | 0 likes

professional from University of Illinois at Chicago

I'm ready for it, been working on making our consulting services work for on-going support, to guarantee revenue.

I believe we are heading towards a "goods recession" -> anything tied to goods gets hit hard but services are fine.

1 year ago | like reply | 0 likes

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