Managing business continuity and finance during COVID-19
COVID-19 has become a global pandemic and it is unclear how long it will last. As entire countries are locking down, social life is significantly reduced around the globe, with a detrimental effect on economic activity. The uncertainty around how long this situation will persist increases the complexity of formulating a concise response.
It is therefore important that businesses are proactive in assessing their risk and vulnerability from both an operational and a financial standpoint. Persisting in this environment requires business to act decisively to mitigate risks and plan for rapid and slow recovery scenarios and associated impacts on liquidity.
COVID-19 directly affects business continuity as business operations reduce, supply chains dry up, and demand plunges. These risks may quickly lead to liquidity risks, pressure on covenants, re-financing requirements, and increasing third party risk.
Immediate focus areas are turnaround and cash – evolving as the situation progresses
The question is how fast can companies respond and recover?
Deloitte Restructuring support
We help companies respond to crises. A turnaround program typically runs in four phases and should first deliver tactical actions, and in parallel formulate a strategy outlining a longer-term perspective.
How we do it
We provide senior, hands-on support to Executive Management and Shareholders to deliver successful business turnarounds, enhance profitability and liquidity, right-size cost structures, and manage third-party risk.
In case of insolvency, we drive the complex negotiation of consensual restructuring solutions, in conjunction with “Plan B” Contingency Planning for corporates & management, private equity, creditors & investors and other stakeholders.
Our Swiss restructuring team of experts are specialized in the service offerings most relevant in these times.
Does COVID-19 trigger cover?
Chief Restructuring Officer support | Leadership and management in disruptive times