The market meltdown in the past week has many forecasting a recession (J.P. Morgan this week warned that it sees a 60% probability). But in every crisis there is opportunity and CEOs in an acquisitive state of mind may want to review Vistage Speaker Marc Emmer’s Mergers and Acquisitions Trends for 2025 and Beyond which he posted on the Vistage website this week. (This content is available to non-members as well).
Mr. Emmer writes “The uncertainties about tariffs and federal spending impact the valuation of the dollar, the balance of imports and exports, and the likelihood of another round of supply chain shocks. In many cases, SMBs do not feel confident paying 6-10X to roll up similar firms. And as companies are distracted by operational challenges posed by tariffs and other market shifts, they may be less focused on mergers and acquisitions. As many economists revise down their GDP growth forecasts for 2025-2026, multiples could erode further.
Many companies had planned to sell, may be putting those plans on the shelf. Others may throw in the towel and decide to get out now.
Warren Buffett taught us to “Be fearful when others are greedy and to be greedy only when others are fearful.“
Is it time to go shopping?
Note: Vistage CEO members, please check out the Vistage Transaction Center, a great resource for those looking to buy or sell a business.
