April 2020
Measures during the COVID-19 crisis
The measures adopted by governments to combat the COVID-19 pandemic are having a drastic impact on the economy and pose a threat to the existence of many SMEs. The containment and management of this crisis situation requires a careful analysis of the options for action and the rapid implementation of difficult measures.
Coping with the current crisis is a challenging and unique task for entrepreneurs. A number of central questions arise, which must be analysed and quickly addressed within a short time: How can liquidity be secured? What measures need to be implemented on the cost and income side? What effects does the crisis have on business plans and investment activities? Do business units even have to be disposed of at short notice or is the company in a position to take advantage of M&A opportunities that arise?
Pragmatic and independent consulting
In these situations, not only must action be taken quickly, but the right foundations must first be laid and analyses conducted. Crisis situations require both operational and financial restructuring measures. Risks must be weighed up and assessed, cost structures reviewed, customer and supplier contracts renegotiated, new liquidity plans drawn up, etc. In these cases, the use of external consulting capacities can offer decisive advantages in order to make quick diagnoses and take the right decisions.
Fundraising
The government emergency programmes provide urgently needed and rapid financial support for many companies. However, the effects of the COVID-19 crisis are confronting many companies with the challenge of realigning their capital structure and placing it on a broader basis. This requires a systematic process in which the best possible target solutions can be worked out and, with direct access to suitable investor groups, quick contacts can be made and results achieved. Outsourcing these special tasks to an experienced partner frees up urgently needed capacities in the operating business.
Adjustment of M&A activities
The natural reflex reaction in an uncertain time is to suspend ongoing M&A projects and to concentrate on ones own problems. A forward-looking alternative is to undertake a comprehensive reassessment of the situation, focusing not only on the risks but also on emerging market opportunities. Thus, takeovers or mergers can be a possible way to reduce risks but also to realize necessary opportunities. Ongoing screening of the marketplace makes it possible to prepare for the future «time after the crisis» and to position oneself accordingly. Market and industry experience as well as systematic research and search processes are essential for such activities.
Make it happen
Ramus & Company has many years of experience in the areas described above and has already advised numerous companies in extraordinary crisis situations in the areas of strategy, financing and M&A transactions. A cooperation with Ramus & Company offers a result-oriented and pragmatic approach, which is implemented by an interdisciplinary team with different industry focus and strengths. Our team aims to contribute to crisis management and is gladly available for a non-binding exchange of ideas.
More information about our support services during the COVID-19 crisis is available here.