“NEVER LET A GOOD CRISIS GO TO WASTE” (Winston Churchill)
The COVID-19 pandemic and even more the European war that has started on 24 February 2022 plus the escalation of the climate change triggered multiple global crises that threatens all areas of our lives. In this existential exceptional situation, decisive steps to cushion the effects of the multiple crises 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 multiple crises 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 analyses 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
- Strain on the global value chains and energy supply
- 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-crises strategy based on the respective scenarios
- Rebuilding assistance when the peak of the crises has passed and the company is to be gradually rebuilt 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 crises have 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 crises subside.
The principal of GRA:FIN does not only contribute 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.