Perspective
10 Mar 2020
5 minute read
Exit of non-core and under-performing assets
Business continuity & financing | Recover: Learn and emerge stronger
Exit of non-core and under-performing assets
Managed exit solutions
Assessing non-core and underperforming assets
With equity markets sharply down, a significant number of profit downgrades have already been linked to COVID-19. Corporates are now challenged to use their capital effectively, particularly if that capital is trapped in underperforming businesses. The anticipated business disruption as a result of COVID-19 is also expected to put more pressure on cash, with a need to deploy capital to protect core business operations. This article discusses how companies need to assess underperforming and non-core business assets as they face unanticipated pressure on working capital lines and liquidity.
Topics covered in this article:
- How COVID-19 has shifted strategic directions and how that impacts subsidiaries
- Factors businesses should consider when assessing cash flow and liquidity
- Stakeholder focus on underlying performance and financial strength of a business
Richard Hawes
Deloitte - United Kingdom
Richard is the Global lead partner for Deloitte’s Managed Exit services, helping clients dispose of non-core and underperforming elements of their operation. Deloitte has specialist teams in Europe, Asia and the Americas that can support clients plan and implement exits in multiple jurisdictions. Richard has nearly 30 years’ experience as an advisor to corporates and their stakeholders. Recent work has included advising on the options for a global manufacturer exiting its operations in the UK and Europe.
