Businesses Going Shopping
Mr. MonopolyEconomic crises beget struggle and restructuring and renewal.
When the housing market collapsed and the banking system all but failed, our present became divorced from our future. Corporate planning has been replaced by cash control; investment by saving; loyalty by expediency. Without faith that tomorrow would be at least as good as today, corporations have been reevaluating every asset, obligation and commitment, seeking every opportunity to convert capital into cash.
This market, like all before it, will turn. Shortages of inventory are creating needs for production. By liquidating unproductive assets and renegotiating future obligations businesses are improving cash flow. Drops in commodity prices are boosting profitability. Excess government spending is creating demand, often in new sectors. Some of the people freed from unproductive employment are inventing new technologies, products and services more appropriate to the needs of their times.
Liquidity + Good Plan = Opportunity
Investment bargains abound. Suppliers are willing to renegotiate long-term contracts in order to secure base business. Technology companies using the most flexible and open platforms have learned how to manage developers from low-cost regions. Empty condominiums can house a new generation of renters. Highly trained and experienced managers are seeking new opportunities.
Virtually every corporation must realign its assets, obligations and capabilities to position itself for healthy growth. Now, while assets are undervalued, is the time to engage in long-term planning. Relatively small outlays today to bring in experienced, independent consultants can help time-strapped executives plan tomorrow's investments without taking management focus away from achieving liquidity.
To learn more about our work in consulting, read about our Practice or check out our Case Studies.
©2009 by JP Farrell & Associates, Inc. All rights reserved.
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