In this uniquely challenging environment, how can you make your business more resilient? The rapidly-changing COVID-19 picture means one false move can seriously impact corporate performance and value.
Here are some considerations for:
This means identifying and acting on opportunities for strategic, operational, organizational and financial change. Establish solid ground for a turnaround by assessing your liquidity position and creating a stakeholder management plan.
COVID-19 is likely to produce distressed situations, where stakeholders often seek additional information or resources to help rebuild their confidence. By understanding the needs of borrowers, lenders and shareholders, and managing stakeholder communications, you can stay on top of issues and make informed decisions. You should assess short-term liquidity requirements and find ways to quickly preserve value and address potential risks to stability.
To help achieve sustainable operational and financial change:
If your business has become distressed due to COVID-19, your first step should be to assess the situation and develop a practical insolvency plan. Working with your advisors and stakeholders, identify the path to maximize available value. Assess the impact and risks of various options, identify the right filing jurisdiction and prepare a detailed insolvency plan that optimizes stakeholder positions.