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132 Managing Customers Through Economic Cycles

are likely going to be relatively low. This is an excellent time
to look for compatible businesses to either buy with cash
or in stock exchange. One manufacturer is currently visiting
all of their competitors to assess what the value of their
current business is either from a customer list perspective,
equipment, or production capability. The CEO comments, “I
am visiting all of our competitors with the idea of acquisi-
tion.” He adds, “There will be a lot of businesses that aren’t
going to weather the economic downturns.”

Once businesses have been identified for potential acqui-
sition targets, acquisitions need to be executed prior to an
economic upturn to leverage the best price for the acquisi-
tion. Ideally, it is also when credit will start freeing up a bit
to address any financing as well. Terms of the acquisition
can range from a cash purchase to exchange of stock. The
CEO commented that one of the targeted companies wanted
to be purchased and because of their current size and debt
load, the only reasonable strategy was to simply take over
the company and give the taken-over company company
stock so that they would benefit on the backend.

One of the critical dynamics of businesses moving through
economic transitions is the opportunity to transform them-
selves. In many cases, the most challenging economic times
provide the most opportunity for innovation. The biggest
challenge is moving beyond “marketing myopia”.

Building the B2B business case

Times are tough. Businesses are scared. Money is tight.
Budgets are cut. Hurdle rates are raised. Sound familiar? No
matter what you’re selling, the importance of the business
case has just reached a whole new level of importance.
Without a compelling business case for your product or
service, your customers and prospects will not buy from you.