Six years after the COVID-19 pandemic triggered the sharpest U.S. economic contraction since the Great Depression, a growing number of business owners are choosing to sell rather than risk another downturn. Marguerite Weese, a wealth strategist at Wilmington Trust, says the emotional toll of the pandemic remains a powerful motivator for owners who have finally seen their companies recover.
“I am surprised by the number of business owners right now who are willing to cash out and sell,” Weese said. “A lot of people still remember going through the pain of COVID, and if that was not a good season for them, they’re saying, ‘Things are back, I don’t know what the next hiccup is, but I feel good and I’m done.’”
The pandemic’s economic damage was staggering. According to U.S. government data, real GDP fell at a record annualized rate in the second quarter of 2020, and unemployment spiked to levels not seen since the 1930s. Economists David Cutler and Larry Summers estimated the total cost of the pandemic at more than $16 trillion, roughly 90% of annual GDP. A 2022 analysis by the Institute for Progress put the figure between $10 trillion and $22 trillion.
Wilmington Trust, the wealth management arm of M&T Bank, oversees approximately $84 billion in active assets under management. Weese says the firm is fielding a surge of conversations with owners who have been approached with buyout offers or who simply feel exhausted. “I know the number that I want to be able to retire on, and now I just want out,” she said, summarizing a common refrain.
Succession planning is also playing a role. Many owners had hoped a child or grandchild would take over the business, but the next generation is often reluctant. “The child may say, ‘I just saw what you went through and I don’t really want to do that,’” Weese noted. That sentiment aligns with a 2023 survey by Georgetown University and Bank of America of 1,032 Gen Z and younger millennial workers, which found that flexible schedules and paid time off rank among the top factors in job choice—priorities that don’t always mesh with running a family business.
Despite the strong seller motivation, many owners are unprepared for the rigors of a sale. Research released by BNY Wealth earlier this month found that while the deal market is receptive, just under 50% of sellers are either somewhat or very well prepared when buyers begin due diligence. That gap presents a clear opportunity for advisors, says Weese.
“We’re having a lot of conversations either because somebody got approached with a number or somebody’s feeling like, ‘I’m tired,’” she said. “I just got my business back where it should be, and now I want to enjoy retirement.”
For advisors, the combination of motivated sellers, unwilling heirs, and underprepared deals points to a clear action plan: start exit-planning conversations early, confirm whether a family successor is realistic, and help owners get their financials and deal documentation in order before a buyer comes calling. As BNY's survey shows, preparation is often the missing link.
Weese advises owners to think about their exit strategy well before they are ready to sign. “If there’s a number out there or they’re saying I finally got my value back, I feel really good, I know the number that I want to be able to retire on, and now I just want out,” she said. That clarity, she adds, is essential for a smooth transition.
