Liquidity Protection
“Cash is King!”
The significance of this statement is particularly evident for medium-sized companies in times of crisis.
Here, fast and custom-fit solutions are in demand.
Maintaining and regaining liquidity is key.
Therefore, developing and communicating a convincing master plan for the way forward is crucial to gain buy-in from stakeholders and to avoid brain-drain.
Examples of our extensive experience in the field are turning around a company successfully that suffered from a revenue drop of more than 40% (due to insolvency of the key customer at the time and the parent company was reluctant continue the financial support).
In another case, an automotive tier 1 supplier was heavily dependent on one high-scale project of one OEM-customer. As this project did not materialize and due to consecutive failures, the investor was not prepared to continue funding for urgently required production materials.
Dedicated negotiation support on various ends help to stabilize the situation within few weeks, while convincing essential knowledgeable employees to support the plan.
Example Recovery & Restructuring
Company size > €100 million sales p.a.
Recovery after breakdown of delivery capability (SCM)
Services
Crisis management after production break-down, Restructuring, Organizational redesign
Activities
Crisis intervention with short-term stabilization after an error in a large ERP project led to the interruption of logistics, product development and significant impairment in sales.
Realignment / restructuring of the units involved, process streamlining, lean-agile optimization of the organization
Result
90% recovery within three weeks.
Realignment of affected departments to double the delivery sequence (in the direction of fast fashion).
How does this work for me?
With our complementary self assessment tool you may get a first idea of your liquidity level and vulnerability towards insolvency.
In a direct (remote and free of charge) INITIATION SESSION, we will draft your needs and frame out how we can support you.
Based thereon, we offer to carry out a DIAGNOSIS WORKSHOP to analyze holistically
1. the economic framework conditions,
2. the revenue and expense areas, and
3. the working capital performance
(The diagnosis workshop may be followed by deep dive sessions as required.)
Based on this input and close interaction with yourself, we will develop the RECOVERY MASTERPLAN
4. develop management options and control instruments,
5. set up a solid financial planning,
6. develop a liquidity-securing action plan
7. support the implementation as required (this can range from coaching to real operational tasks “get our hands dirty”) such as communicating a convincing master plan for the way forward is crucial to gain buy-in from stakeholders and to avoid brain-drain.
For higher efficiency, we suggest an agile working mode with biweekly, client-participating reviews on predefined deliverables and flexible agile contract. This enables quick feedback and adjustments as necessary.
In other words, the typical approach is
- Quick
- Delivering tangible results continuously
- Low risk, as the agile contract ensures required skill capacity and allows for adjustments as required.
Book Complementary Fact Finding
