Around the world, the term undervalued is gaining strength. There is undervalued equipment, buildings, and land. Buildings can be purchased for less than they cost to build just a few years ago. Businesses are for sale at “fire sale” prices. Today,” undervalued” is beginning to transform many industries.
Opportunity or Risk?
Of course, it depends. It’s somewhat analagous to going to a garage sale. “It’s only a bargain if you can truly need or can use it.” However, here is the fascinating part of the equation. “Undervalued” tends to be a greater opportunity, especially for small to mid-sized businesses. Companies that are well run and have adequate capitalization can take advantage of destressed assets. But here is the bigger picture to think about, and it falls under the “Without Warning” umbrella.
If a company is able to purchase undervalued assets and put them to work, how does this change the competitive landscape? Can this become a competitive advantage?
