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Sustaining Value in a Changing Economy
The credit crisis is just one of several factors influencing Canadian companies today. The Canadian dollar, rising energy costs, pressure from off-shore competitors and the economic slowdown in North America are also contributing to widespread economic uncertainty; creating challenges and opportunities and a need for businesses to focus on value preservation and enhancement.
Signs of financial stress and distress are being felt by many, with profit and cast flow pressures, strained lender relationships and the deferral of capital expenditure.
The current environment also presents attractive buying opportunities for financially healthy businesses and confident investors, for those who can effectively manage the risk associated with a stressed or distressed business acquisition, the upside potential can be significant.
Whether responding to challenges or opportunities, the focus in today's environment needs to be on preserving and creating value through:
- proactively assessing the business strengths and vulnerabilities
- positioning the business to respond effectively to short term challenges
- planning for long term prosperity
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