Most companies will simply tread water. The ability to spot turning points in the cycle before the crowd brings opportunities for tremendous profits. The opposite brings opportunities for tremendous losses. Realistic assessments of the fundamentals and appropriate strategic business decisions make all the difference. Last, it's important to take a hard look at the prices being paid for acquisitions.
Irrational exuberance can saddle the acquirer with a heavy financial burden for years to come.
The activities listed above require significant actuarial analysis. Sound actuarial analysis is the foundation for developing appropriate business strategies. These strategies and associated relevant data may then be loaded into the DFA model. The results of all the relevant output exhibits need to be considered in the selection of appropriate strategies. Statutory and GAAP accounting rules and proposed changes to such rules also need to be considered.