Finance
Upgrade human capital
A downturn can also create an ideal opportunity to upgrade human capital and tailor it and A
straightforward exercise of mapping the required skills against the organization's current skills is likely to
reveal significant gaps, as well as areas of substantial oversupply. With redundancies on the agenda for many
companies, this is a timely opportunity to address these imbalances
Corporate Re-structuring
Establish up front a shared vision of a desired future operating model. This should provide answers to
questions such as the following: What role will Merger Acquisitions play, and where we are likely to make
them. The underlying trends that have been driving consolidation across a range of industries have not gone
away. The benefits of scale, geographic reach, and access to scarce resources will continue to make large
Merger Acquisitions an attractive source of future growth.
Divestiture of non-core assets is a strategy that companies should be considering carefully. Consequently,
companies need to take a clear and decisive view as to what constitutes a core vs. a non-core asset and act
accordingly.
Conclusion
Risks are coming from last two three quarters—mapping these carefully and understanding how to mitigate
them will be essential. Many companies will struggle to survive— and some will not make it. In these cases,
rapid action to secure cash flow and minimize exposure to risk can make the difference. Finally, companies
with the financial strength to back major acquisitions should be looking at the current environment as
presenting an ideal opportunity to establish market leading positions through domestic, global M&A. on the
downturn company with competitive advantage and on the learning curve will look very different than it does
today
www.Venture-Care.com/Magazine
December 2017
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