The US government is facing an economic crisis, and had recently issued a government shutdown, which needless to say affected everyone in the country. The two week shutdown issued a major wakeup call to corporations who are becoming increasingly concerned with the state of the US economy and are now trying to figure out a plan that will help them in the future, when such a crisis presents itself again.
The damage done by the two week shutdown has been reported to be catastrophic, even though there have been conflicting reports in the media which state otherwise. With the holiday season looming ahead, the shutdown incurred drastic effects, resulting in massive losses and damages for the corporate big hitters. It is only fair to assume that small businesses and corporations are going to be facing more complicated situations in the coming future, and will struggle to cope with another government shutdown.
This situation has affected everyone and economists are suggesting that a similar situation in the future may cause more catastrophic effects. The shutdown has dented the growth of certain sectors in the economy and forced many companies to file for bankruptcy. The big giants took a step back and started long term prevention methods, but small businesses struggled to keep their heads above water.
The merger and acquisition activity was non-existent during the shutdown, since companies did not want to take risks, keeping in mind the economic situation of the country, and the huge daily losses they were making during the shutdown. A recent survey by MergerMarket found that nearly 70% of people blamed the economic situation for a stagnant merger and acquisition market and they further emphasized, that there is bound to be no activity in the industry, until the economic market of the country improves in the next few months.
The future of the economic market in the United States looks bleak, and the shutdown only highlights how fragile the US economy really is. The best way to survive in this period and avoid a similar scenario in the future is to plan for this in advance and make a strategic business plan that is less dependent on the US economy. This means saving cash, cutting down costs rapidly, and expanding your resources and outsourcing to other countries so that a shutdown like this one does not bankrupt your company.
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