With equity markets sharply down, a significant number of profit downgrades have already been linked to COVID-19. Corporates are now challenged to use their capital effectively, particularly if that capital is trapped in underperforming businesses. The anticipated business disruption as a result of COVID-19 is also expected to put more pressure on cash, with a need to deploy capital to protect core business operations. This article discusses how companies need to assess underperforming and non-core business assets as they face unanticipated pressure on working capital lines and liquidity.
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