02 Feb Recession Hurts

It’s getting to me. For a long time, the recession did not seem to penetrate the lower-middle market. You know? Companies with revenue between $5 million and $250 million? But, ah, that’s not the case anymore. Nobody seems to be spared.

Sure, our firm has gotten a few deals done, albeit at lower prices, using smaller regional banks providing for the debt the financing, but now there just aren’t many pockets of prosperity left. Not that I can see. Opportunity, yes. Prosperity, no.

It’s also clear that  the highly leveraged are out there in front, staring at the headlights of the oncoming freight train. In many cases, it’s companies purchased within the past three years.

I spent Saturday afternoon helping a business owner assess his situation. He bought the company two and a half years ago, a leveraged buyout, and it’s not pretty.

Unfortunately, in every case, it’s real people. Real lives. Real hopes and dreams. When a business owner is stressed, even “freaking out,” it affects all those around him or her. And some will not react in healthy ways. They’ll respond to the crushing stress and “failure” in dysfunctional ways, such as depression, anger, abuse (of self or others), or worse.

Is there somebody you are thinking about right now? Worrying about right now? Maybe you should give him or her a call.