From the course: Corporate Finance: Profitability in a Financial Downturn

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Asset redeployment

Asset redeployment

From the course: Corporate Finance: Profitability in a Financial Downturn

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Asset redeployment

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- Asset redeployment and repurposing is often an overlooked strategy when companies are thinking about boosting profitability. But the truth is, it's one of the easiest things you can do to help increase and maximize the value you're deriving from assets you already own and have already paid for. The goal of asset redeployment and repurposing is to maximize the value of the assets you own. Sometimes this involves physically moving them. Like if you have pickup trucks at one facility that you're not really using, but you need them desperately at another facility, just redeploy them, that'll help boost their productivity and in turn that boosts the profitability of your business. There are different kinds of costs people talk about when they're looking at businesses, fixed costs, variable costs, but there's also sunk costs. This is more of an economic idea, which means you've already paid for it, the money is gone. And when we're…

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