ACM in CEO Times: Navigating a Transitional Economy: How Business Leaders Can Adapt and Thrive

We are in a period of economic transition. The current landscape is evolving, and for business leaders, this means rethinking priorities, acting with discipline, and preparing for both challenges and opportunities. As we move through 2025, it’s clear that this year could present significant moments of economic inflection.

Preserve Cash, Strip Out Excess
With interest rates at generational highs, cash has become more valuable than ever. Business owners need to scrutinize their cost structures, pulling back on non-essential spending—including luxury perks and excess payroll—to maintain liquidity. This is not about austerity for its own sake; it’s about staying nimble and solvent until the economic picture stabilizes.

Turnaround Starts with Truth
Every successful turnaround begins with an honest assessment. Do you have the right leadership in place? Is your team aligned? If your capital structure is under strain, are you being transparent with your financial partners?
Credibility with banks and investors is crucial. Loss of trust can start a downward spiral, but transparency and proactivity can stabilize operations, rebuild trust, and reposition for growth.

Smart Capital Strategies
Capital is still available, but it’s expensive. Smaller companies should consider SBA financing options, such as the 504 program, particularly if they are looking to incorporate real estate into their business. While rates may be high, the structure can still be manageable.
For mid-market businesses in the $50 to $70 million range, this might be a good time to refinance or seek an equity partner. Family offices and specialty investors are becoming more active in helping companies bridge through transitional phases.

Bankruptcy: A Tactical Reset
Bankruptcy is not a death sentence—it can be a strategic tool. It’s important to build a cash reserve so that if bankruptcy becomes necessary, you enter it with leverage. Done properly, it can provide breathing room—especially with leases—and offer time to reset operations. The goal isn’t to delay distress, but to create conditions for a clean, confident exit.

Core Advice: Don’t Hide
Above all, be honest—with your team, stakeholders, and yourself. The companies that survive and thrive are those that confront reality early, align internally, and make decisions with clarity. Assemble your leadership team and start solving forward. You don’t have to go it alone, but you do need to be real.

At ACM, we step into companies that are under pressure, bring structure to the chaos, and help leaders make the right decisions at the right time. In a transitional economy, that’s what it takes.

ACM Capital Partners
LinkedIn: James F. Martin

 By James F. Martin, CEO