As business consultants in today’s economic climate, we hear one similar question from clients, bankers, attorneys and friends, “How are companies surviving and what are their strategies to cope with the business downturn?”

The answer:

• There are companies that are thriving with profits and cash flow at or near record highs.
• Many companies are surviving with a long-term goal to thrive. These companies have experienced a dramatic downturn, however, because they have a strong balance sheet and cash, they focus on minimizing the short-term damage and positioning themselves to capture market share after the recovery.
• There are companies that are focused on survival. These companies fear they will cease to exist if for no other reason than they can no longer meet more stringent bank lending criteria.
• Other companies have or will sell as a result of one of the above or the owners can no longer handle the stress of managing the business during another downturn.

Regardless of your situation, it is important to have an experienced sounding board in place to help make business decisions. Bruner-Cox has developed a service menu to partner with companies to meet the economic environment head-on. Our goal is to help clients maximize their opportunities and meet their short and long-term goals. For those on the brink, short-term goals include survival. For others, goals may include managing cash flow, identifying acquisition targets, or executing the sale of a division or the business.

Thriving
Although the economic downturn is a constant challenge, it also represents a favorable climate for solid companies to:

• Acquire weak competitors
• Acquire top sales, marketing and technical talent
• Renegotiate vendor terms, lease agreements and other long term contracts
• Address difficult to manage areas of the business

The opportunities can go on.  However, it is important to remember the key to success is effective business, financial, and tax planning and to implement and execute a business plan with the focus of thriving not merely surviving.

Bruner-Cox can help your company thrive. Our experts can meet with you to design a strategic plan to articulate your vision and goals.

Surviving
Never has the phrase “cash is king” been truer than it is today. Companies in the survival mode need to develop a plan and set short and long-term goals. We have worked with companies to:

• Forecast cash flows, shortfalls, and develop financing strategies
• Develop accounts receivable, inventory and accounts payable management strategies
• Model scaling the business to a reduced size and identify divisions, assets or personnel that may be reduced
• Develop effective lines of communication with their bank
• Develop “worst case” scenario strategies

In many situations, aggressive and proactive management is the difference between the companies that will survive to thrive and those that will perish.

Selling the Business
Recently, there has been increased merger and acquisition activity in the publicly traded company market. This is also true in the private sector, as well as a number of strategic and financial buyers emerging with funding in place and the desire for acquisitions.

Our BC Transaction Advisory Services Group, Ltd is available to assist in the sale of your business from assessing the feasibility and value of a sale to marketing the company.

With time, this business downturn will end. Will your company thrive, survive or perish? Call your BC Engagement Executive or Steve Pittman, CPA, MBA, Consulting Services Partner at 330.497.2000 to discuss a strategic plan for success.

Want more information on ways to overcome the economic downturn? Let us know if you are interested in attending a Bruner-Cox seminar on this topic. Email your response to Lyndsie Ihrig at lyndsie.ihrig@brunercox.com.