Asset Rationalization

Asset rationalization is the process of redistributing assets for a better bottom line. This can be done many ways...getting rid of some assets, perhaps closing a facility, or even expanding a facility...possibly streamlining processes. As you may have guessed already, this quite often means jobs being eliminated.

The process often proceeds in predictable steps. First, the company might try to eliminate expenses. Got equipment laying around not in use? Sell it, especially if payments are still being made on it. After that, the company might look to streamline...this is where the job cuts come in. Lastly, the company may look for alternative financing, better interest rates etc. for the debts it has.