Financial Management

Financial management: Opportunities of the crisis the crisis tend to be the fuel needed by our ingenuity to find opportunities that help us to overcome them. The exploitation of these opportunities can not only let us overcome the complications of the moment but also strengthen future business. Improvement of structures: to identify opportunities for improvement, the first thing we must do is look toward the inside of the company. Just to give a couple of examples of improvements to structure could mention adjustment of inventories or administrative processes optimization. These cases may be obvious (or Elementary). But the number of companies which, despite believing that optimally manage these items, present serious deficiencies is notorious. Optimization of assets: another factor that can contribute to alleviating the financial situation, at the same time, persist in the future. Typical examples of actions that may result in an improvement in the use of assets could include: O outsourcing of certain operations or Improvement of idle capacity or deallocation of assets or decrease in production scheduling: crises are usually a good time to get rid of unused or underutilized assets.

This does not necessarily mean selling assets which, precisely because of the crisis, have a value below which could be obtained in a normal situation. Indeed, schemas that surrenders the asset value pre crisis in part payment of a debt they could be analyzed. This alternative, could also be complemented by an option in favour of the company to repurchase the asset in the future at the same value that has been delivered, over an interest rate. Another case could arise if the company decided to divest a business unit that would have on operations. Suppose, for example, a company with several business units, of which one does not correspond to its main activity. In this case the sale of that unit, allocating the funds obtained the cancellation of part of the liabilities could be ordered to a third party.

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