Corona Support Services
The timeline of the corona crisis and governmental lockdown measures is still unclear. With our Corona Support Services, we would like to help you navigate your company through the crisis – and out of it again – safely and in a way that preserves its substance.
Corona Support Services
The mainstay for this is full transparency of your company’s liquidity situation, as you can only make the right decisions with a precise picture of your financial leeway and weak links.
To ensure solvency in the coming months, it makes sense to know the impact of different scenarios (L/U/V/W/root) on your firm. On this basis, we will develop measures together, such as short-term cost reduction, and implement them with you. Also, we will look into potential contributions from governmental aids or the use of tax reliefs in the context of the Corona crisis.
LIQUIDITY PLANNING & TRANSPARENCY
- Introduction of „Cash governance“ as a basis for all managerial decisions during the crisis
- Rolling 13-15 weeks liquidity forecast for daily steering & weekly reporting
- Risk weighting of all cash-ins & identification of unneeded cash-outs
- Assessment of financial leeway
- Analysis of the specific impact of different crisis scenarios (L/U/V/W/root)
- Modelling of liquidity development in the next 18 months as a stress test
- Identification of profound, quick implementation cost measures, in co-operation with all stakeholders
FINANCING & STATE-AID SUPPORT
- Assessment of requirement for state aids, fiscal reliefs, short-time allowances, guarantees, etc.
- Support in application and communication
- Preparation and documentation of business plan, reflecting measures in implementation
MEASURE IMPLEMENTATION MANAGEMENT
- Measure monitoring: “who does what until when?” and proactive implementation support
- Implementation of working capital management and cost measures
DEFINITION OF THE „NEW NORMAL“
- After (!) securing liquidity / solvency
- Put business model under scrutiny – strategically, operationally and tactically
- Macro and micro perspective to be assessed
ProduCt iN focus
Liquidity planning & transparency
In the Corona crisis, decision-makers must make it their top priority to secure the substance of their company.
Conditions need to be created to drive “on sight”, very operational, with a strong focus on liquidity; without losing sight of the big picture – which is what we call “cash governance”. To this end, we set up a rolling 13-15 week liquidity planning, so that we can manage on a daily basis. We set up a process with you to evaluate cash-ins from receivables and order book and perform a continuous risk weighing. In this manner, we find critical weak links and identify cash-outs that are not absolutely necessary in the short term.
With our methodology, we are able to accurately assess your financial leeway and are able to implement targeted measures such as working capital management and cost measures.
Understanding the business (Q&A session, short workshop)
Getting access to relevant actual & forecast data (PBC list)
Set up financial model
INITIAL ASSESSMENT & QUICK MEASURES
Assessment of liquidity situation & financial leeway
Development of first hypotheses for cash containment measures
1st DISCUSSION WITH MANAGEMENT
Discussion of liquidity forecast & critical “weak links”: assumptions that must hold
Start of decision-making process for measures
WEEKLY REPORTING & DISCUSSION
Liquidity forecast on a rolling weekly basis, prior to payment run
Sparring with management
Weekly refinement of process with feedback loop for deviations
Quantification of crisis impact as stress test for the business
Refinement of required measures and liquidity forecast
Measure monitoring: “Who does what until when”
Proactive implementation support
Support in applying for state aids
Handover of forecast and measure monitoring to client
ProduCt iN FoCus
Financing & State-Aid Support
To dampen the economic effects of the corona lockdown measures, extensive financing programs are available from German federal and state governments – which also applies in comparable fashion to many other countries in Europe. The available programs have been expanding steadily in recent weeks.
Obtaining corona financing assistance is by no means “for free”. Additional debt financing will lead to higher debt service in the future, taxes or rents will only be deferred, and short-time working allowance may have an effect on employee motivation.
Determination of required financing need, based on liquidity forecast
Analysis of applicability & access to external financing measures and Corona aids
Impact and timing analysis of financing, guarantees, short-time work allowance, tax reliefs, etc.
SUPPORT IN APPLICATION PROCESS
Preparation of business plan (incl. liquidity forecast for 18 months, description of Corona impact, measures in implementation, and scenarios) to demonstrate debt service capability
Preparation of all relevant application documents
Communication with stakeholders
NEGOTIATION & APPROVAL PROCESS
Liaise with and coordinate communication with local banks, KfW as well as state and federal institutions
Handling of additional enquiries and information needs by decision making bodies
short-time work allowances,
tax reliefs, etc.
We support you in calculating the financing requirements closely in order to keep future burdens on the company low – tightly linked to liquidity planning. In the application process, we work with you to create a business plan that provides an overall picture of the company’s situation – and guide you through the application and administration processes.