MASTERING FINANCIAL CHALLENGES
23.03.2020 – The coronavirus has taken you by surprise and is posing major financial challenges for your company
The rapid global spread of COVID-19 and the direct consequences it is having on society and the global economy is the dominant topic at present. You are already seeing how it is restricting your daily life and are feeling the first direct consequences of the pandemic as a business owner and decision-maker.
Sales are collapsing and could drain the liquidity of your company quicker than you expected. In this challenging situation, our knowledgeable banking and restructuring team is on hand to offer its many years of expertise and provide you with practical support.
1. IMPENDING AND INCREASED RISKS
Currently, the threat of a global recession is of primary concern and is being reinforced by the collapse of the capital market. This concern focusses on companies’ entire supply chains – from regional and global purchasing, through local and international production and the provision of services, right the way up to conventional and digital sales.
Across the globe, the measures already taken by some governments are inevitably leading to production interruptions while also causing drastic changes in consumer behaviour, something which is reflected in the sudden decline in expenditure on goods and services. This global uncertainty is forcing decision-makers to review their investment plans and possibly put them on hold for the time being.
Safeguarding liquidity is therefore becoming a key challenge for your company. The German Federal Government is pledging its support to companies and has announced that it will relieve the burden on the economy by offering huge financial aid and shorttime working allowances.
What does this mean for your company and how can we provide you with advice and support in this situation?
2. THE KEY FINANCIAL QUESTIONS FOR YOUR COMPANY
In the current crisis, it is necessary to analyse the financial situation of your business quickly and thoroughly, particularly with regard to financing requirements. By taking the following approaches and measures, we can advise and support you in securing the survival of your business:
- Analysis of short-term liquidity planning
- Analysis of short-term measures to improve liquidity (e.g. increasing credit limits, net working capital optimisation, cost savings)
- Investigation of the potential effects of the crisis on profit and loss, the balance sheet and cash flow
- Identification of potential restructuring measures
- Analysis of existing financing commitments and conditions, including a review of agreed covenants a Preparation of information for creditors and renegotiation of existing contracts
- Analysis and controlling of the relevant early warning indicators (e.g. orders received, cancellations, capacity utilisation)
3. SCENARIO AND STRESS ANALYSES / STATE AID
To continue functioning in times of crisis, scenario and stress analyses need to be carried out in good time in order to identify potential alternative courses of action. We are here to help you with applications for state-supported liquidity aid. We will prepare all the necessary KPIs and other documents for you and accompany you through the meetings with commercial banks and public development banks. It is important to us that you are able to concentrate on the increased operational tasks of your day-to-day business.
We have many years of experience in financing corporate and real estate customers. What’s more, we are well versed in the current financial aid offered by the German Federal Government and the federal states and are in direct contact with the respective financial institutions and banks.
4. OUR TEAM IS HERE TO HELP YOU DURING THIS TIME OF CRISIS
Thanks to the many years of expertise of our Financial Advisory Services team in financial restructuring and procurement of financing as well as corporate restructuring, you will benefit from a multidisciplinary advisory approach in this challenging crisis situation. Depending on your requirements and circumstances, we will consult with our specialists in the fields of auditing, tax, law and consulting.