Private mid-market companies can't afford to stand still in 2013: Ernst & Young

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, Jan. 24, 2013 /CNW/ - 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 
Fabian. "Companies can't afford to sit still." 
About Ernst & Young 
Ernst & Young is a global leader in assurance, tax, transaction and advisory 
services. Worldwide, our 167,000 people are united by our shared values and an 
unwavering commitment to quality. We make a difference by helping our people, 
our clients and our wider communities achieve their potential. 
For more information, please visit ey.com/ca. 
Ernst & Young refers to the global organization of member firms of Ernst & 
Young Global Limited, each of which is a separate legal entity. Ernst & Young 
Global Limited, a UK company limited by guarantee, does not provide services 
to clients. 
Erika Bennett 416 943 5497 erika.bennett@ca.ey.com 
Julie Fournier 514 874 4308 julie.fournier@ca.ey.com 
Sarah Shields 604 648 3607 sarah.j.shields@ca.ey.com 
SOURCE: Ernst & Young 
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CO: Ernst & Young
ST: Ontario
NI: FIN ECOSURV  
-0- Jan/24/2013 14:00 GMT
 
 
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