Businesses are now looking to how they will move forward into the ‘new normal’ after Covid 19 – things have changed dramatically (some permanently) and many for a significant amount of time.
If returning to how you operated 6 months ago is your strategy, this is likely to be a missed opportunity to position the business to generate long term growth and value. You will need to establish strategies to adapt and grow in a permanently disrupted market, as well as identify and capitalise on market opportunities.
So how do you navigate the optimal way through and beyond? You will want to:
- Review the market conditions and strategic acquisitions or disposals
- Review business/owner objectives including funding, structure and tax considerations
So how can we help?
We want your business to be agile to the challenges ahead as well as being able to maximise the opportunities that this situation may have presented; ultimately, ensuring the longer term success and stability of the business moving forward.
Our Covid business Refocus review offers you:
|Review existing assets – to include physical assets, skillsets, IP, know-how, staff, customer/supplier contacts etc|
|Consider the previous marketplace and new opportunities – establish how the existing assets can be applied to make products and services that will be in demand in the future|
|Identify any gaps in the assets –establish what is required and plan how to obtain them|
|Bring new products or services to market – consider the most effective way of achieving this, including the assessment of cost/benefit of any changes required and consider the implications of alternative options|
|Financial considerations – look at a review of costs, working capital and tax structuring to maximise returns for the business and shareholders|
|Recommendations and actions – an action plan with suitable KPIs to monitor ongoing performance|
It is important that the updated strategy is both documented and monitored to provide clarity and focus to optimise outcomes. In addition, options need to be properly modelled so that resources can be focused in the right areas to provide the best returns.
As well as positioning for growth and investing in the right areas, we will review your business in detail to look at other areas where you can maximise your returns such as data analytics, cash management, cost base reviews and the efficient use of technology.
How we have helped other businesses
Multi-site retailer with most sites closed during Covid
Situation: Cash flow requirement; strategic question on whether to open all sites when recovery starts
- Align the shareholder objectives for the longer term
- Analyse the performance of the sites
- Produce an operational financial model
- Assess acquisition strategy for distressed competitors
- Recommendation report with action plan
Outcome: Operational focused financial model created and acquisition strategy agreed with supporting funding
Construction industry player
Situation: Strong balance sheet and cash position; shareholders at retirement age
- Objective setting for shareholders and management
- Valuation now and roadmap to exit valuation
- Review and analysis of exit readiness
- Working capital analysis and optimisation suggestions
- Cost review
- Benchmarking against industry
- Action plan for sale in 18-30 months’ time
Outcome: Aligned shareholder base prepared for exit
Retail focused supplier
Situation: Loss of revenue; highly skilled workforce and assets; realisation that recovery would not take them back to where they were before
- Facilitate strategic thinking on the future market position
- Assessment of resource and opportunities to diversify
- Modelling of new revenue streams to consider impact on profitability and working capital requirement
- Challenge assumptions on new markets
- Develop medium and long action plan
- Continue to monitor and assess KPIs and strategy
Outcome: More resilient business model achieved with a refocus of resources