Crisis can be caused by a failed strategy, underperforming management team, unavoidable external factors such as a market recession, legal issues, key employee loss, and unforeseen competitive pressures.  The term "crisis" indicates the board had inadequate warning signs and business is in day-to-day survival mode.  Often, financial resources are strained during crisis, yet, the return-on-investment to salvage value is at a peak.  Walther Edge is available to exert immediate energy to critical initiatives.  For example, if the company has lost a CEO or CFO, debt financing may be falling on inexperienced personnel.   At a time when the core assets of the company are highly jeopardized, financing alternatives seek solid assurances of the protection of those assets.   Experienced and calm leadership is essential to success.

Developing a short term survival plan requires assigning priority and value to key assets.  This is complicated by the need to balance short and long term value.  Often overlooked during the risk assessment is the need to develop a "protection plan".  Whether it is a customer relationship, partnership, or key employee, it is critical during crisis mode to evaluate competitive pressures and take action where appropriate.  The key performance metric for a survival phase is shareholder value recovery.  Cost reduction is a necessity in financial crisis, but a commitment bonus to the lead architect of your product team may be a wise investment. 

Divestiture of non-strategic assets have sustained many enterprises during crisis periods.  Unfortunately, high executive stress or lack of resource can limit the opportunity base.  If you have ever been a CEO or CFO  struggling with a 40% reduction-in-force, you can relate to this dilemma.   Vision and objectivity  is critical when assessing various divestiture alternatives.  Is there a revenue line that may have value to a partner but is non-strategic to your long term goals?   Has your maintenance margin dwindled to the point that divestiture to a third-party resource would be advantageous both short and long term?  Do you own intellectual property that can segmented from your primary offering that has potential market value and minimum competitive risk?  These represent successful concepts that have contributed to corporate stabilization.

There is little allowance for error during crisis periods and Walther Edge only accepts engagements with clear value protection opportunity.   Michael.