“NEVER LET A GOOD CRISIS GO TO WASTE” (Winston Churchill)
The COVID-19 pandemic triggered a continued global crisis that threatens all areas of our lives. In this existential exceptional situation, decisive steps to cushion the effects of the crisis on the company must be taken consequently.
For many companies it’s time to critically analyse the fundamentals of the business with everything on the table for inclusion. There are numerous examples of famous companies that changed strategic direction after such a re-think and hugely boosted corporate performance as a result.
M&A may be the right tool to manage the still-unpredictable economic effects of the COVID-19 pandemic and find the strategic footing. Pursueing deals may streamline the companies’ assets, establish or extend their digital capabilities, acquire top talent, and otherwise strengthen their competitive positions.
Based on the analysis of your risk situation, we will help you to develop tailor-made solutions to contain the economic setback and look for new business opportunities. Thus, we offer you professional support, in particular in the following areas:
- Compensation for a sales shortfall
- Liquidity and corporate planning
- Financing & refinancing / debt restructuring
- Communication / negotiation with authorities, banks and business partners
- Revision of business models – identification of new business areas and sales channels
- Identification and utilization of cost reduction potentials
- Valuation and selling of non-operational assets
- Selling of unprofitable and non-core business units, respectively
- Development of Post-crisis strategy based on the respective scenarios
- Start-up assistance when the peak of the crisis has passed and the company is to be gradually started up again
A recovery strategy could be broken down into 3 imperatives:
SURVIVE – REINVENT – SEIZE OPPORTUNITY
While it’s normal to focus on what is happening right now, especially in light of the constantly changing situation, business owners also need to spend time thinking about how to rebuild once the crisis has passed.
Businesses first need to deal with cash flow and liquidity issues, considering how to potentially repurpose to keep those in check. The next step is to think about possible areas for improvement, such as modernization of technology. Lastly, for those less impacted, now could be the time to take advantage of new business opportunities.
A new business environment
Our advice is designed to adapt to the new challenges, however, it could also help business owners navigate what is set to be a new economic landscape once the crisis ends.
The principal of GRA:FIN does not contribute only relevant expertise from the SARS crisis in Asia in 2003 and the financial crisis in 2008/09 as commercial banker based in Singapore, but also assumes the role as moderator, supports clarification processes, pushes processes forward and supports the conception and implementation.