Private Mid-Market Companies Can't Afford to Stand Still in

Private Mid-Market Companies Can't Afford to Stand Still in 2013:
Ernst & Young 
Ongoing global uncertainty prompts companies to assess, evaluate
growth opportunities 
TORONTO, ONTARIO -- (Marketwire) -- 01/24/13 -- Canadian companies
operating in the private mid-market will face a number of common
obstacles on their road to growth and profitability in the year
ahead.  
Ernst & Young's 2013 private mid-market outlook points to a
struggling global - and, more particularly, US - economy as the root
cause of slowed growth and reduced demand in the construction,
manufacturing, retail and wholesale industries, among others.  
"Success in the face of declining demand begins by looking inward and
assessing whether your company has the means, the customer base and
the capital to grow," says David Fabian, partner and co-leader of
Ernst & Young's Private Mid-Market practice. "If sustainable growth
isn't achievable, then companies must assess whether there are
opportunities to reduce costs or improve efficiency internally."  
To stay competitive this year, companies should take a critical look
at the following areas: 


 
1.  Workforce. Review productivity and the benefits generated by teams. 
2.  Vendor relationships. Measure whether value is being generated by all
    suppliers. 
3.  Product line. Confirm gross margins realized are consistent with
    expectations. 
4.  Organizational structure. Ensure each legal entity holds the appropriate
    assets, and that legal exposure is minimized and costs are being
    managed. 
5.  Capital structure. Evaluate whether debt/equity ratios are consistent
    with risk tolerance. 
6.  Succession planning. Ensure your company is appropriately structured for
    the future. 
7.  Estate planning. Assess whether estate planning needs are appropriately
    structured. 
8.  Global expansion. Consider opportunities to expand abroad. 
9.  Transaction opportunities. Investigate domestic or international
    acquisitions. 
10. Global reach. Manage remote locations/offices/sales forces in other
    countries.

 
"Making the most of opportunities this year will depend on private
mid-market companies' ability to objectively evaluate their market
position and act accordingly - whether by expanding abroad or exiting
the industry," says Fabia
n. "Companies can't afford to sit still."  
About Ernst & Young  
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Contacts:
Ernst & Young
Erika Bennett
416 943 5497
erika.bennett@ca.ey.com 
Ernst & Young
Julie Fournier
514 874 4308
julie.fournier@ca.ey.com 
Ernst & Young
Sarah Shields
604 648 3607
sarah.j.shields@ca.ey.com
www.ey.com/ca