The Financial Crisis forced many companies to examine their liquidity fundamentals and take speedy action to address short term risks of liquidity and financing. The discipline the crisis forced companies to apply to cash forecasting and working capital need to be embedded in an organization’s DNA in order to deal with what seems like a permanent repricing of credit.
In addition, companies need to address the longer term challenges of several more quarters of a difficult economic environment characterized by high unemployment and continued weakness in consumer demand.
Companies that emerged from the crisis well capitalized can find opportunities to achieve strategic objectives such as acquiring weakened competitors to increase market share, adding new product lines or expanding into new geographies so they will be well prepared for the anticipated recovery. The human capital element should also be considered as the downturn may have created opportunities to snap up high-quality talent from competitors who could no longer afford to retain them.