There are companies which emerge from recession as a better and stronger organization. However, such a comeback solely depends on the kind the strategies that are being adopted during the phase of recession. Such strategies might be an absolute contrast to the methodological wisdom and conventions. These can actually better the stock prices than the former peers and eventually infuse a better and a formidable structure in the company for further improvement.In a study of about 1000 companies , mostly US companies which were industrial, between 1982 to 1999 , it has been revealed that there are two major classes of identification of such companies :-
1. the industry leader which remained and continued to perform strongly
2. the challengers which moved up a long way and provided strong competition to the leaders.
A study of such companies during both healthy and worsened economy further revealed that the strong challengers looked out for more acquisition opportunities during the recessive economic stretches than the less successful ones. They increased their acquisition plans by almost 63% in order to emerge as stronger performers. As the competitor companies brought deal-making activities to a halt , the strong challengers actually did not lessen their transactions ,emphatically notifying the fact that they were more inclined on buying for cheap .
Thus, recessive economy can also be a very fruitful phase for major acquisitions and re framing strategies and setting a much prosperous trend for the future.
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