CEO Tools Blog
Recession Tool: Asset & Cost Management
Merrill Lynch recently posted an economic commentary entitled "Revisiting the deflation theme" which contains some great ideas for recession readiness and response. And, whether or not our economy deteriorates into deflation, your industry or your raw materials and products might, as for example what has happened to severely declining iron and steel prices in the past few months.
Sensible pro-actions include: increase your liquidity (more cash, quicker collections, lower inventory, higher inventory turns) , reduce your leverage without compromising your cash position, work now to spread your debt service out further, turn fixed costs into variable through outsourcing and the like so that you can curtail the variable when necessary, focus on cost containment since top-line will be squeezed, and stay tuned for more tips and ideas! Please email me at and I'll return-email the PDF to you, with thanks to Merrill Lynch.