The sweeping and rapidly shifting tariffs imposed in recent weeks have reignited the greatest fear for many businesses: uncertainty.
Regardless of how trade negotiations evolve, 2025 demands a strategic reassessment of sourcing and product assortment—especially for middle-market businesses facing margin pressure and ongoing supply chain constraints. Navigating this environment requires both objectivity and creativity.
At Carl Marks Advisors, we bring decades of experience helping companies weather disruption and adapt to fast-moving market conditions. Below are three key areas where we can support your business:
Rethinking Your Supply Chain
New tariffs further complicate supply chain challenges that have persisted since the COVID era. It’s essential to understand where products and components originate—particularly for materials sourced from countries like China, Vietnam, or Cambodia.
While most businesses can’t shift suppliers overnight, expanding your procurement base and identifying local alternatives where possible can build long-term resilience. If domestic options aren’t viable, it’s critical to quantify the added costs and determine where efficiencies can be gained elsewhere.
For companies without a CFO to lead these conversations, an interim CFO can provide immediate financial guidance, stabilize operations, and implement cost-saving measures quickly.
Understanding Your Consumer
Tariffs risk fueling inflation, and middle- and lower-middle-market consumers are already feeling the strain. In March 2025, the Consumer Confidence Index fell for the fourth consecutive month, reaching its lowest point since January 2021.
As confidence drops, discretionary spending will likely follow—affecting retail, dining, travel, and entertainment industries. While aggressive discounting may offer a short-term sales lift, the long-term impact can be damaging. A financial expert can help determine a pricing strategy that preserves both margins and customer loyalty.
Planning Ahead
Even amid shifting policies, businesses must remain focused on long-term priorities: preserving liquidity, identifying risk, and protecting financial stability. Inaction is not an option.
Proactive cost-cutting is essential, with the greatest impact coming from early action. Middle-market businesses should implement 13-week cash flow models grounded in conservative assumptions. These models must be rigorously and continuously evaluated, with a sharp focus on viability and profitability to support sustainable growth. Our team specializes in delivering this level of disciplined forecasting and analysis.
Carl Marks Advisors offers clarity, structure, and a strategic roadmap to align stakeholders and guide businesses through difficult transitions. In times of uncertainty, the right partner can make the difference between merely surviving and truly thriving.
