"Who do you think will win the Presidency?"

"Which party will control Congress?"

"What will happen to tax rates?"

"We're holding off on hiring and investing until after the election."

We like to begin our newsletters with what we're hearing from Los Angeles CEOs and CFOs. Literally all of our conversations this month have included variations of these three questions and accompanying sentiment.

Everyone is focused on the elections in 11 days, as well as on their impact on the economy and their business concerns. Regarding the latter, we're hearing the following mentioned most frequently:

• The slow pace of the economic recovery
• Healthcare costs and their impact on hiring
• Potential tax increases for owners of pass-through entities
• Expiration of depreciation incentives
• Reductions in defense spending at California businesses
• Continued exodus of California jobs to more friendly states
• California's ongoing budget crisis and its ramifications 

More than any time in recent memory, we're seeing businesses putting high-level decisions on hold until after an election. Allowed to devolve into an extreme position, this wait-and-see stance can result in missed opportunities to improve profitability and reduce costs -- positive outcomes that above-average companies experience regardless of market conditions. Delays can also cause companies to miss out on opportunities once issues are clarified, because they will not have addressed these decisions in time to react.

None of the seven concerns above will be fully resolved with the election. It is also unlikely all seven will be fully resolved with the reconvening of Congress after the election. Under ideal market conditions, economic growth, policy clarity and regulatory certainty prevail. But it is possible our "new normal" may not exhibit growth, clarity and certainty in the near future.

So how long do we wait to act, and what should forward-thinking companies be doing now? This is where we can help. We work with Los Angeles CEOs and CFOs to develop proactive profitability and growth strategies that are grounded in operational excellence and optimized financial infrastructure. I welcome the opportunity to discuss your challenges in more detail and invite you to contact me by replying to this email -- or by calling me at 800.276.1750 Ext 101.

In the meantime, let's join together and make sure our voices are heard at the polls on November 6.

Sincerely,

Arthur F. Rothberg

Mangaging Director