LOOKING TO THE FUTURE OF YOUR COMPANY









 Creative Downsizing
 

Issue

Your company has invested in vertically integrated internal resources that  support all phases of your product cycle (development, manufacturing, customer support).  Competition forces evaluation of the expense to support non-mission critical internal resources.  A consideration in all cases is the loss of the proprietary value added by internal resources.

Conventional Solution
Sell
operations in soft market taking capital loss or shut down activities incurring the cost of layoffs and writing off equipment, losing proprietary assets in either case.

Creative Solution
Generate revenue and lower expenses through creative outsourcing of non-mission critical technical resource

 Creative Process 

Work with senior management to identify:
 Identify non-mission critical operations

 Determine commercial value

 Develop outsourcing strategy

Priorities: 
 Satisfy existing customer commitments

 Maintaining mission critical resources

 Eliminate expense while retaining proprietary technology

 Generate maximum revenue from sale of asset

 Recover cost of shut down

 Outsourcing Strategies:
 Spin off operation

 Sell off operation

 Offer capabilities to commercial customers

 Identify commercial elements for sale

 License proprietary technology

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