Recovering From a Recession

A study evaluating how 4,700 public companies performed before and after three global recessions (1980, 1990 and 2000) provided some insights on the best path to take for the fastest recovery.

  • 17% did not survive the downturn (bankrupt / acquired / private).
  • 80% did not recover their sales growth and profit margins three years post recession.
  • 9% flourished after the downturn.

Of the 9% that flourished, the companies that deployed “a specific combination of defensive and offensive moves has the highest probability – 37% – of breaking away from the back.”

Companies that cut costs faster and deeper than rivals had the lowest probability (21%), and companies that aggressively invest throughout the recession only fare slightly better (26%).

Click on the link below for some terrific anecdotal accounts.

recession stock market performance
Source: Ranjay Gulati , Nitin Nohria and Franz Wohlgezogen | "Roaring Out of Recession" | 03/01/2010 | Visit