In times of curfews, empty sales areas, declining sales and lack of incoming payments, close liquidity management and monitoring of corona-induced business model risks is more important than ever.
Since most companies were unprepared and suddenly hit by the corona crisis, a short reaction time is now required to implement effective measures to secure their continued existence. From our almost 40 years of practical experience as turnaround managers, we can provide you with the following three recommendations for fast, effective liquidity management:
Do not shy away from a top-class and cross-functional group of participants: Involve the most capable employees and ensure they are authorized to make decisions: Management, department heads and, if necessary, individual knowledge and performance providers.
Set up a daily updated dashboard as quickly as possible to provide an overview of liquidity developments and key performance indicators. Other "strategically important" controlling tasks can wait.
At the beginning, meet daily if possible, but as briefly as possible, preferably standing up. The employees will appreciate the trust placed in them and will implement the defined measures with the necessary commitment. Include all relevant stakeholders in your considerations.
Here are the main points:
Your special focus with regard to securing the existence of your company should be on the topic of liquidity!
As the company with the most experience in the market, especially with German medium-sized businesses, we not only guarantee pragmatic support in the COVID-19 phase, we will also accompany all implementation and turnaround measures and ensure their transparency, effectiveness and sustainability right from the start. Take us at our word!
Georgiy Michailov
Managing Partner
Dipl.-Volkswirt, B.M. (TSUoE)
Email to Georgiy Michailov
T +49 (0)221 91 27 30 - 15
Jessica Hirsch
Partner
Dipl.-Betriebswirtin
Email to Jessica Hirsch
T +49 (0)221 91 27 30 - 68
