Many companies are currently taking a hard look at their
operations after one of the worst economic downturns in nearly half
a century. It should be noted, however, that some companies emerge
from a recession stronger and more highly valued than they were
before the economy soured. By making strategic choices that
sometimes defy conventional wisdom they enhance their competitive
strengths and thus gain more power to shape their industries.
One approach to countering the prevailing market turbulence is
to maintain a disciplined M&A program that actively allocates
capital to acquire new businesses, encourages their growth, and
then sloughs them off in a timely fashion. Even in demanding
economic conditions successful companies will mobilize the
management time and talent needed to identify, execute, and
integrate strategic M&A transactions. Conversely, those
corporate icons which rely upon their sheer size and momentum to
survive rarely create superior shareholder
