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June 17, 2020
As the impacts of COVID-19 play out in the industries we serve, all company leaders are facing nuanced challenges and opportunities. Our team’s sub-vertical industry structure is proving increasingly valuable as we advise our clients and contacts. The more plugged-in we are, the better counsel we can provide.
We have been talking as a team about common themes across industries—what company leaders need to understand as they navigate the weeks and months ahead. We are facing a new normal—a post-COVID environment in which three areas of focus are paramount:
1. Understanding the demand for your business: Monitor leading indicators to assess the sustainable demand for your product or service. When you see a pick-up, ask yourself whether it is real or if it is a short-term blip. For example, some of our food & ingredients clients saw a big spike in March, but now are returning to more normalized long-term demand levels.
This assessment requires peeling back the onion by:
2. Revisiting your strategic plans: Do not wait for the next strategic planning cycle. Everything has changed, and fresh data must be collected and considered to form new underlying assumptions for strategies. Reevaluate all potential strategic options to update and communicate clear goals to your team. Determine whether you need to reconsider your acquisition strategy or adjust your timeline for a sale or capital raise.
3. Managing liquidity: Keep liquidity and cash at the forefront. Maintaining balance sheet strength will allow for greater flexibility down the road, either for defensive or offensive initiatives and opportunities that may arise. Consider, or reconsider, all available equity and debt capital options to optimize your balance sheet. If you believe there could be opportunities to grow or acquire that require capital, consider investing time in proactive capital markets conversations to garner insights on available options and prepare to capitalize on a financing more quickly when an opportunity does arise.
We are seeing promise and activity in the technology, healthcare, food, beverage, agribusiness, and industrial automation sectors.
Continuing with our “What’s Now? What’s Next?” series, we’ve highlighted below thoughts from two of our team members from these more active sectors:
Each member of our team is dedicated to remaining deeply connected within the industries they serve, bringing valuable information to clients, and staying ahead of trends impacting their sub-vertical areas of focus.
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