According to a study by The Boston Consulting Group that was done during the last economic slowdown in 2002, companies that avoid mergers and acquisitions in times during economic slumps may be missing a strategic opportunity. The study analyzed 277 public M&A transactions occurring 1985 and 2000 and concluded that mergers taking place during periods of slow economic growth have a higher likelihood of success.

The study showed that while only 42% of the strong-economy deals created shareholder value over a two-year period, more than 47% of the weak-economy deals created value.  Even more important, these weak-economy mergers or acquisitions generate considerably more shareholder value, on average, than deals taking place during periods of above-average growth.

While the study involved publicly traded companies, the conclusions reached are equally applicable to privately-held companies as well.