Effective of acquisition and merger in economy recession

A lot of company care out some business deal in economy recession, they will meet risks and unrealistic. credit market operate abnormal, so finance will become an obstacle not easily overcome. However, about, Companies have strong finance and strategies, so economy recession is good opportunities to them advanced competitive position through acquisitions or merger.
Following analysis of Bain and Company ( a Strategies and global business consulting firm in US) during over 24.000 contracts from 1996 to 2006, acquisition complete In a distant future recession in 2001 to 2002, they earned excess returns three times with similar cases occurred during the previous boom growth (Time, 2008). Consider the long term, reality show the company acquires in the whole time of explosive growth market and downturn performed better than the company only acquired in time of growth.
Although in any economic environment, the most important objectives of the merger and acquisition (M & A) is to deploy the company's strategy. Chinese computer manufacturer Lenovo has bought IBM's Personal Systems Division for around $1.75 billion. Products of Lenovo have strong position in the market after gaining the technology of IBM. Lenovo will also benefit from marketing and sales leads provided by the company's 30,000 strong sales force and through IBM.com. IBM will receive $650 million in cash and $600 million worth of Lenovo shares currently traded on the Hong Kong stock exchange. IBM will also take over some $500 million worth of liabilities from IBM.
In economy recession, M & A activity also make more strategic choices. For example, when the Pfizer expire monopoly of patent about some leading pharmaceutical, which has decided contract acquired competitor Wyeth.
Other industries also tend to reinforce the strength when the market-leading group working to increase strategic options by expanding the scale or scope. For example, wireless phone companies can make more value for their products such as add new software or new content. In 2009, Verizon( a telecommunications company of US) expended 28.1 billion USD to acquire Alltel to have opportunity step into the market in rural areas and remote areas. Verizon Group, major shareholder of Verizon Wireless, said in 2008 its sales had risen 16.4% over 2007. That's why Verizon Wireless remains a steady flow rate of acquisition, including in the context of crisis. From 2004 to 2007, a total the company has conducted 40 acquisitions.