The liquidity challenge that the recovery phase of the COVID-19 crisis poses is hard to underestimate. Social distancing, the availability of testing/treatment and potential ‘bumps in the road’ will all weigh heavily on business confidence and the wider economic environment.
Businesses of all shapes and sizes will be required to plan, model and pull a range of operational, financial and strategic levers, but in doing so must also consider the capital structure implications of these actions when facing up to a new reality.
Other key considerations when modelling cash flow
most of which will be difficult to accurately model and/or require regular reappraisal
The recovery phase could be long and may come with an increased funding requirement. How can you adapt the shape of the business to a new future and can you generate or preserve cash strategically during the process?
The restaurant chain
The industrial distributor group
The family business