The Issue:
“Should I buy a company during an economic downturn?”
The advice from members of The Academy for Chief Executives was:
* We certainly shouldn’t generalise about the best time to buy a company. There are advantages to purchasing a business during an economic downturn and if the synergies are right then timing can be irrelevant. However due diligence of ALL the important aspects, not just financial, must be carried out to ensure the right decision is made.
* In a major economic downturn when there is a negative feedback loop concerted action is required to mitigate the recession and to stop the spiral; those companies who have the courage to weather the storm and take the opportunity to expand often come out stronger than ever before.
* Many MDs and CEOs sitting around the table (‘The Board You Could Never Afford’) had previously experienced an economic downturn and were able to offer sound advice to those who hadn’t experienced a recession.
The question of whether to buy a company during an economic downturn is an example of the type of issue discussed at an Academy meeting – and this is just a snippet of the advice given by our members. For confidentiality reasons we cannot divulge all of the advice provided – however, we do hold open meetings where guests are able to attend and experience for themselves the real power of ‘The Board You Could Never Afford’.
The Academy for Chief Executives, a leading provider of experiential business learning facilitates groups of CEOs and Managing Directors who meet together every month to network and take full advantage of experiential learning. To find out how you can take advantage of advice like this every month, visit www.chiefexecutive.com
Brian Chernett
Founder
The Academy for Chief Executives