“The relatively low valuations of many businesses in the current economic environment could represent a largely unrecognized buying opportunity that may not last for long. Businesses that acquire a competitor or complementary business at a bargain price may, in fact, be able to use the downturn to their advantage. While there will be a cost to such a move over the short term, the potential increase in business value over the medium to longer term could be substantial as the economy recovers and the business finds itself in an expanded or more dominant market position. A strategic acquisition can position the business to be first out of the gate when the economy fully recovers.”

RBC – From Downturn to Upside