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Corporate defaults are on track to more than double this year, according to newly released research from global consulting firm Bain & Co.

The research, conducted by Bain's Corporate Renewal Group, predicts 50 and 75 companies with assets of more than $100 million will go bankrupt this year; next year, the group estimates more than 100 of these companies will file bankruptcy. The greatest pain likely will be felt in consumer sensitive sectors such as housing and auto as the lingering mortgage crisis, credit crunch and skyrocketing commodity costs continue to wreak havoc on the U.S. economy.
 
"Many companies remain ill-prepared for the gravity and potential duration of the current downturn," says Sam Rovit, head of Bain Corporate Renewal Group and research author. "But recessions are not equally bad for all companies. For companies that can manage effectively in difficult times, there's plenty of upside opportunity even in a downturn."
 
The research finds successful companies take certain actions in a downturn, which not only help stave off extinction, but lead to greater competitive market share and profitability when stable markets return. However, the actions differ depending on the beginning balance sheet health of the company.

Highly leveraged businesses should build forward-looking cash flow models using realistic assumptions, incorporate changes in loan covenants and improve balance sheet strength through monetization of non-core assets including sale-leasebacks.

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