The best recession-proof industries to buy businesses in

One question I often get is:

“Ben, which industries should I focus on for my first acquisition?”

If you’re worried about economic uncertainty, this matters more than ever.

The businesses that survive recessions are the boring, essential services people can’t live without.

Today, I’ll break down the industries I suggest and why I like them.

The Three Pillars

Before looking deeper at any business, it must have:

1. Recurring revenue, where customers pay multiple times per year

2. Recession resistance, with an essential service people need regardless of the economy

3. A higher barrier to entry, so it’s tougher for competitors to replicate

Here are a few specific industries that nail all three:

Accounting firms

People will always need to file taxes and keep books.

These firms require specialized credentials (CPA licenses), which keeps competition limited, and the best part is…

They’re typically valued at just 1-1.1x revenue (compared to 3-4x cash flow for most businesses), and often run 40-50% profit margins.

I’m personally building a portfolio of accounting firms because the economics are so favorable.

(Inside the Acquisition Ace community, members learn how to identify the best industries and specific businesses worth pursuing. Then, we help you finance and close those deals. To learn more, you can schedule a call with my team here.)

Property management companies

Housing demand stays consistent even when real estate prices fluctuate.

Focus on companies managing long-term residential rentals (not short-term vacation properties that get crushed in downturns).

If you have capital to deploy, this model generates predictable monthly revenue with minimal day-to-day involvement.

Niche manufacturing

Specialty manufacturers with 20+ year track records and loyal B2B customers are gold.

One of my students bought a commercial steel railing manufacturer that’s been operating for 60 years. 

They’re the dominant supplier in their state with contracts that renew automatically.

And, these businesses have extremely high barriers to entry (equipment, expertise, established relationships) and consistent demand.

Pet services

Americans now have more pets than children in their households.

Veterinary clinics, boarding facilities, and grooming services serve a market that keeps growing regardless of economic conditions.

Pet owners will cut their own expenses before cutting their pet’s care.

Automated service businesses

Car washes, laundromats, and ATM routes offer the closest thing to passive income in acquisitions.

I own an ATM route myself!

These businesses run with minimal staff, generate cash flow weekly, and maintain demand through any economic cycle, and are perfect for first-time buyers who want to keep their day job.

The boring business advantage

These aren’t sexy businesses.

You won’t impress anyone at parties talking about owning a laundromat.

But that’s exactly why they work!

One well-chosen boring business can replace your W2 income and set you on a path to financial freedom in just a few years.

Seems like a worthwhile trade to me!

Now, learning which industries to target is just the first step.

Inside the Acquisition Ace community, you’ll learn how to actually find these businesses, finance deals with little money down, and transition smoothly as a new owner.

Our community of 2,000+ members includes everyone from first-time buyers to seasoned acquisition entrepreneurs.

To see how this community could help you secure your first deal…

👉 Book a quick call with our team here.

Onward,

— Ben Kelly