Bain uses cookies to improve functionality and performance of this site. More information can be found in our Privacy Policy. By continuing to browse this site, you consent to the use of cookies.

We have limited Spanish content available. View Spanish content.

Snap Chart

Does Your Recession Strategy Measure Up?

Beyond cost containment, winning companies seize the moment to go on offense.

  • mayo 16, 2019

Snap Chart

Does Your Recession Strategy Measure Up?

Recessions rearrange the board. Bain analysis of company earnings worldwide finds that winners diverged from losers during the past recession and widened the gap during the subsequent expansion. The number of US companies that substantially increased profits was 47% higher during the last downturn than during stable periods. And 89% more US companies lost profitability in the last downturn vs. stable periods. Preparing before a recession gives companies more options. Specifically, winning companies excelled in four areas: early cost restructuring, plus some combination of balance sheet discipline, aggressive commercial growth plays and proactive M&A.

Tom Holland is a partner in Bain & Company’s Accelerated Transformation business. Jeff Katzin is a partner in Bain’s Performance Improvement practice. They are based, respectively, in San Francisco and New York.

Read the Brief

Beyond the Downturn: Recession Strategies to Take the Lead

The next crop of leaders are acting now to restructure costs and go on offense.

Tags

Want to continue the conversation

We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results