“It is easy to be brave when far away from danger” – Aesop.

The above quote is an apt description of Corporate Development and CFO behavior over the past few years due to many companies choosing to accumulate cash on their balance sheets rather than deploy it for acquisitions. However, this is not to diminish the importance of taking a cautious approach in turbulent times as the aforementioned storyteller also sagely noted “It is thrifty to prepare today for the wants of tomorrow”.

You know what's going to happen soon: The markets will rally. There will be a few false starts, but then there will be a sustained recovery. There's no doubt we're all looking forward to turning that corner but for some companies, predators loom in the distance. They have been biding their time, waiting for the perfect time to strike, and detailing every aspect of their plan.

Let's say a company has survived the recession, having made hard decisions and hunkering down. Perhaps that company will emerge only to be stalked-to be the target of a hostile takeover attempt. How did they prepare?

Most panic.

The defense: Create a poison pill? Repurchase stock? Spin off a division or two? Attract new bidders?