The economic downturn in both local and worldwide markets means that all businesses need to reassess their individual prospects and altered opportunities, and also adapt their funding to meet the constraints of the marketplace. Now is the time to reorganize activities around core businesses and competencies, renegotiate funding arrangements and dispose of peripheral activities which are not generating sufficient value.
The last year and a half has seen unprecedented change in the CIS market. Revenues have been hit by substantial falls in both demand and prices whilst new commercial credit has almost disappeared. The ruble has depreciated against both the dollar and the euro, generating continued inflation, albeit at reducing rates.
Businesses have therefore had to react quickly to their new circumstances through a combination of downsizing, reducing working capital, seeking to defer debt repayments and, at the extreme, temporary closures. A general recovery in domestic demand still appears some way off so the various short term responses to the crisis now have to become more permanent.
A fresh look at the strengths and weaknesses of a business involving both sector and funding experts and the formulation of a plan to maximize the business' value.
For more information on Reorganization services please contact Ian Colebourne, CIS Managing Partner for CFS, via tel: +7 (495) 787 0600, fax: +7 (495) 787 0601.