Turnaround planning and execution
Respond & recover from the COVID-19 crisis
COVID-19 has become a global pandemic and it is unclear how long it will be with us. As entire countries are locking down, social life is significantly reduced around the globe, with a detrimental effect on economies.
It is therefore important that businesses are proactive in assessing their risk and vulnerability from both an operational and a financial standpoint, and that they act decisively to mitigate issues.
In case your business is facing a downturn with a severe effect on liquidity, a turnaround is required to avoid insolvency. This could be triggered by a management decision or by CO Article 725, whereby the board of directors must propose restructuring measures as soon as losses erode more than half of the notional shareholder equity, statutory reserves and treasury share reserves. We are well equipped to support the management by rapidly developing a turnaround plan and assist in the Financial Restructuring and can support in installing a CRO, if required.
A turnaround program typically runs in four phases and should end in a strategy, offering a long-term perspective