Here is a sample business action plan for addressing this risk: Step 1: Conduct a Thorough Financial Analysis Analyze financial statements and identify the root causes of the volatility. Look for trends, patterns, and key drivers impacting financial performance. Assess factors such as sales fluctuations, cost structure, pricing strategies, and cash flow management. This […]
Volatile financial performance in small or midsize businesses can cause a ripple effect. Financial performance is critical to success, of course, but other aspects of the company center on it as well. The highs when performance is good can lead to overinvestment in risky projects, for example, or reduce efforts to eliminate inefficiencies. Later, […]
Here is a sample business action plan for addressing this risk: Step 1: Conduct Market and Customer Analysis Identify target market segments and industries with growth potential. Analyze customer needs, pain points, and emerging trends. What gaps and opportunities exist in the competitive landscape? Step 2: Develop Customer Acquisition and Retention Strategy Define […]
Having a majorly successful project is cause for celebration, but it’s not enough to fuel your whole business for the long term. Potential acquirers want to know that they’re not putting all their eggs in one proverbial basket—which is why they want proof of diversification, or at the very least, of many more projects down […]
Here is a sample business action plan for addressing this risk: Step 1: Conduct Lease Analysis and Forecasting Compile and review all existing lease agreements. Make sure you know all lease expiration dates, rental rates, and potential rent increase clauses. Forecast the potential cost increases over the next few years. Step 2: Develop […]
A risk of future cost increases is simply the nature of doing business, but some characteristics of a company’s operations invite more risk than others. This is the case if you’ve got a rent arrangement for your offices or facilities that is less than the market rate—or if you’ve been so insulated from rent […]
Here is a sample business action plan for addressing this risk: Step 1: Assess the Impact Evaluate the potential implications of the Right of First Refusal (ROFR) or Right of First Offer (ROFO) provisions on the company’s sale. Consider the effect on buyer interest, transaction timeline, negotiation dynamics, confidentiality, and deal certainty to understand […]
The existence of Right of First Refusal or Right of First Offer can complicate the already stressful M&A process. This situation can discourage competitive bidding and severely limit the number of potential buyers. A KPMG survey discovered that 90% of executives say that their M&A deals are more complex and riskier than ever, so […]