1. How to Achieve a
BUSINESS RECOVERY
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2. Four Key Questions...
One Commitment
1. Investigate the business:
What’s Going On Right Now?
2. What are the Immediate Risks?
3. Seriously assess the business viability:
Will it Survive the Recovery Process?
4. What can be done (practically)?
5. Identify the Recovery Plan
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3. Investigate the Business
- What’s Going On?
• Review Financial information including: Aged
creditors & debtors; Balance Sheet; P&L;
forward cash projections
• Understand the Business
• Canvas views from CEO, CFO, staff, advisors:
- What are the constraints?
- What are the opportunities?
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4. Will it Survive
the Recovery Process?
• What short-term funding needs?
- Cash available now
- Cash requirements
- Cash generation options
• How long can the business sustain on its
current path?
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5. What are the
Immediate Risks?
• Identify risk areas & what can be done to
stabilise the company & preserve value:
- Where is value leaking?
- What are the regulatory or legal risks?
• Implement controls accordingly
• Assess the CEO & current management:
could they achieve a business recovery?
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6. What can be done
(practically)?
• Sales & customer specific strategies?
• Supplier & debt strategies: what can you
offer them for support?
• Cost reduction strategies?
• Working capital reduction strategies?
• Equity strategies?
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7. The Business
Recovery Plan
• Based on the previous questions:
- Create a Recovery Plan that specifies
how, when and where you will deploy
resources, what the conditions are of any
further debt/equity commitments & any
conditional decision (stop/go) break points
- Deploy a monitoring program to provide
‘real-time’ feedback on all key risks
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8. THANK YOU...
and Good Luck!
Visit us for more assistance
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