With talk of the economy turning around and the credit markets improving, well-capitalized corporations are likely shifting their focus from stabilization and preservation to future outlook and growth opportunities. As the number and complexity of opportunities increase, boards need to play an expanded role that helps management with a broad base of differentiated expertise in distressed/value investing. Directors can also assist by identifying opportunities early through networking with directors of other boards and with professional advisors.
The following article, written by Rozanne Kibel and Dean Mullett of PricewaterhouseCoopers Corporate Finance Inc., discusses what boards need to know to help management identify and seize emerging opportunities in a distressed marketplace. It originally appeared in the October 2009 issue of Director Journal, a publication of the Institute of Corporate Directors (ICD).