I’ll never forget the moment I realized it was time to sell my business. It was 2020, deep in the trenches of the COVID-19 recession. My coffee was cold, my inbox was a horror show of cancellations, and my top employee had just quit to go “find herself” in Montana. Classic.
You’d think that’s the worst time to even think about selling, right? Yeah… that’s what I thought too. But let me tell you something I learned the hard (but profitable) way: selling your business during a recession isn’t just possible—it might be the smartest thing you ever do.
Let me walk you through it.
Why I Even Considered Selling During a Downturn (a.k.a. Am I Crazy?)
Short answer: Maybe. But here’s the long answer.
I ran a niche e-commerce company selling high-end kitchen gear. Think artisanal knife blocks and copper pans that look like they belong in a Michelin-starred kitchen. During boom times, business was sweet. We were getting influencers tagging us in everything, holiday sales exploded, and I was starting to fantasize about moving to Portugal.
Then… boom. Pandemic. Recession. People weren’t spending hundreds on cookware anymore. My overhead stayed high, my ad spend got weirdly expensive, and worst of all—I was burned out. Like, full-on zombie mode.
So, I asked myself the question that changed everything:
“If not now… when?”
I realized waiting for a “perfect market” might mean never selling. I didn’t want to run the business into the ground while clinging to the idea of a higher valuation that might never come. So, I flipped the script.
Step One: Reframe the Narrative
You know how people say, “No one wants to buy during a recession”? Total myth.
Buyers love a good deal—and recessions are basically Black Friday for business acquisitions. But you’ve got to give them a story they can believe in.
I didn’t pitch my business as a sinking ship. I pitched it as a discounted opportunity that was weathering the storm with potential to explode post-recession.
What I focused on:
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Resilient customer base: People were still cooking at home—my traffic proved it.
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Low churn subscription revenue: We had a small but mighty subscription box service.
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Untapped growth channels: We never went wholesale or retail (yet).
It was like showing someone a fixer-upper that already had solid plumbing and good bones. All they had to do was slap on some paint and scale.
Step Two: Clean House (Financially and Literally)
Okay, confession time: my books were a hot mess.
I had weird expense categories like “Misc. Shopify Apps” and hadn’t reconciled my accounts since, um… a while ago. Selling a business without clean financials is like trying to sell a used car without washing it—technically possible, but super gross.
So I:
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Hired a bookkeeper to clean up 3 years of QuickBooks chaos
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Organized every contract, vendor list, and employee file into Google Drive folders
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Made a 10-slide pitch deck with revenue trends, customer acquisition costs, LTV, etc.
This took weeks. It was boring. It made me question my life choices. But it paid off big time because when I started talking to potential buyers, I came off as someone who actually knew what the hell they were doing.
Step Three: Pick the Right Kind of Buyer
During a recession, you’ll find two types of buyers sniffing around:
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Bottom feeders – These guys want to lowball you into oblivion. Their pitch is usually: “Well, the economy sucks, so your business is probably worthless. I’ll take it off your hands… for $5 and a Chipotle gift card.”
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Strategic buyers – These are folks who see your business as a puzzle piece that fits into their bigger picture.
I kissed a few frogs (and by kissed, I mean wasted hours on Zoom calls listening to nonsense). But eventually, I found a small private equity guy looking to roll up e-commerce brands in the kitchen/lifestyle space. We vibed immediately.
He didn’t blink at the recession. He saw the same growth potential I did—just with deeper pockets and more energy to execute.
Step Four: Negotiate Like You’re Not Desperate
Even though my bank account was sweating, I never let it show.
I used silence like a weapon. When they made their first offer, I just said, “Let me think about it,” and waited. Three days later, they came back with more equity and a higher upfront payment. 🧠
Here’s the thing: Recessions make everyone jittery. If you come off confident and prepared, you stand out like a lighthouse in a storm.
What helped me hold firm:
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Knowing my numbers cold
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Having a backup plan (I could keep running the biz if I had to)
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Reminding myself that walking away is sometimes the strongest move
In the end, I got:
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A 6-figure upfront payout
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An earn-out based on post-recession performance
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A consulting agreement for 6 months at $5K/month (cha-ching 💸)
What I’d Do Differently (a.k.a. My Facepalm Moments)
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Start preparing 6 months earlier. I waited until I was fried and stressed.
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Get legal help sooner. Those LOIs and asset purchase agreements are not light reading.
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Stop oversharing. I blabbed a little too much in early buyer calls. Mystery is leverage, baby.
Also, pro tip: Don’t celebrate the sale until the wire hits. Trust me.
Key Takeaways: Selling Your Business in a Recession
Let’s break this down into snackable bites:
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Don’t fear the downturn. Recessions attract bold buyers with capital.
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Package your business like a hidden gem. Emphasize what’s working and what’s scalable.
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Clean up your books and ops. Sloppy records kill deals.
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Know your worth. Even in rough markets, value doesn’t disappear—it just shifts.
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Stay cool in negotiations. Desperation stinks. Confidence smells like money.
Final Thoughts (and One Weirdly Sentimental Goodbye)
Selling my business during a recession felt a little like jumping off a moving train. Terrifying, exciting, and totally disorienting. But once I hit the ground, I realized… I wasn’t broken. I was free.
If you’re sitting there wondering if you should sell now or wait—ask yourself, “What’s really holding me back?”
Sometimes the worst time is the perfect time. You just won’t see it until you’re on the other side, sipping a lukewarm coffee that finally tastes like freedom.
And hey, if I can pull it off with stress acne and a broken espresso machine, you’ve got this too. 👊
Ready for a recession-proof exit? Or just want someone to high-five you through the chaos? Either way, I’m cheering you on.