Access to Experts Panels
As CEO, no one knows better than you that it's your job to get the company through these unprecedented times. ACETECH is presenting three separate panels that address various aspects of the current crisis. Leading suppliers of services to the high tech industries have joined together to provide you guidance on now to navigate through these times and take advantage of the current environment to make your company even stronger in the future.
Panel 1 - Operational Efficiency: Making Your Cash Go Further
Panelists: CB Richard Ellis, Corporate Recruiters, KPMG
Topics
- People
- Facilities
- Working capital and controls
- Cost optimization controls
- Improvement opportunities
Theme 1: My business continues to slow down; I need to cut my burn. People and facilities are my biggest expenses. In order to survive, I need to cut back on both. What cards do I hold as a tenant to get out of my current lease? If I lay off staff, what severance obligations does the company have? What are the officer and director liabilities in the event of a layoff?
Theme 2: I see the downturn as an opportunity. I think that this may be a good time to recruit some great people. How difficult is it to get these people in this market? I don't necessarily need to expand my facilities right now but will need more space in the next two years. There is now a housing glut; has the commercial real estate market followed? If so, how do I take advantage of this "buyers market" and get a great deal on a new lease?
Theme 3: We're doing ok but could use more working capital. Are there any sources of working capital out there that are worth pursuing. ? What cost controls can I implement to optimize my operation and how quickly can I implement these?
Panel 2 - Buying or Selling Your Way Out
Panelists: PricewaterhouseCoopers, Lang Michener, Ernst & Young, BCIC
Topics
Assets - asset impairment, balance sheet valuation, accounts receivables
Company
o Sellers side expectations and how to enhance ability to get a transaction done, your value in a buyers market
o Buyers side expectations, how to target opportunities
Theme 1: There is no financing available to me; I need to sell some assets. I've got some fancy test gear and other hard assets that are not currently being used - what is the best way to get maximum value for these? Apart from that, I have some cool IP, a few patents (some pending.) What are these assets worth today? How do I go about selling them?
Theme 2: Instead of shutting down a part of my business, I'd prefer to sell that division. Hell, if somebody offered me reasonable price, I'd sell the entire business. What are buyers' expectations in this market? What can I do to make the company valuable? Are there adjustments that I should make to the balance sheet before I put a division or my company up for sale?
Theme 3: This looks like a great time to inorganically grow our business. We are fortunate to have some cash (and some publicly traded shares) available to fund the purchase of some competitors or complementary businesses. How good of a deal can I get right now? Should I wait a bit longer or be aggressive right now?
Panel 3 - Risk Mitigation: Protecting Yourself From The Downside
Panelists: RBC, AON, Deloitte
Topics
- Foreign exchange
- Capital structure
- D & O insurance
- Reps and warranties
Theme 1: All of my revenue comes from outside of Canada, how do I deal with ongoing volatile currency fluctuations? Most of my revenue is from the US and most of my costs are in Canada, what can I do to protect myself in case the US dollar weakens again. I also get revenue from Asia and Europe, what are the best strategies to mitigate my currency risks in those markets?
Theme 2: We see our US and international business growing. Currently, we are only incorporated in Canada. Would this be a good time to incorporate outside of Canada? How do we best set-up our capital structure to move forward?
Theme 3: I am growing increasingly concerned that we are not adequately managing our risk. How do I prepare for worse case scenarios? I'm not sure that have adequate officers and directors insurance - what we have is already very expensive. Am I more likely to be sued for product liability at this time; if so, what can we do to reduce that risk? My customers and partners are asking for onerous reps and warranties; if these were to trigger, it may kill the business. Can I insure against this?
Theme 4: The cities and local governments that I am dealing with are demanding that we post huge performance bonds (and sometimes payment bonds for our partners.) To comply, we would need to tie up all of our cash for months if not years? Is there another way to finance these? Are there alternative ways of dealing with their concerns?
