FINANCE TOOLBOX

FOR COVID-19

COVID-19 poses unprecedented challenges: the finance toolbox supports your organization in the difficult times ahead. 

 

STEP 1: EMERGENCY LIQUIDITY MANAGEMENT

Cash, Cost, Net Working Capital

  • Cash forecast for 6-12 month

  • Identify payables to be delayed and receivables to be accelerated

  • Assess ability to get access to relief funds or additional external funding

  • Identify cost saving potential  

  • Monitor net working capital available to avoid insolvency filing requirements

  • Closely monitor debt covenants and enter into restructuring discussions early

STEP 2: FINANCIAL AND 

BUSINESS PLANNING

Planning

  • Update or develop a mid-term business plan and financial model using scenario planning and Monte Carlo simulations - a useful tool to quantify the uncertainty of COVID-19 variables.

Alternatives

  • Identify alternatives! What if ...? What if we redeployed existing resources? What if we source in alternative ways? What if we offer alternative products? Etc. 

STEP 3: STRATEGIC REVIEW

  • Strategic review of capabilities and resources in line with the new situation: can idle resources be used to identify new business opportunities or improvement potential? Can additional customer value be generated? Can different services be offered?

  • Is digital transformation required to succeed in the "new normal"?

  • Does the portfolio need restructuring? Which entities should be strengthened, which ones divested? 

  • Is governance strong enough for crisis? 

©2019 by Growth Partners FZ LLC.