On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. There are many considerations in evaluating your liquidity position and planning for recovery.
- What is the current liquidity runway?
- What internal levers can be pulled?
- What external levers are available?
- Establish a cash management office to centralize all liquidity actions
- Commence immediate priority recovery actions
- Conduct scenario modeling and contingency planning
- Tap existing credit facilities
- Enhance products/services and channels/customer profiles
- Stress 13-week cash flow model and longer-term forecasts
- Test covenant compliance
- Engage in negotiations with creditors
- Stress test scenarios
- Realign costs/capex
- Dispose of non-core businesses
- Pursue insurance proceeds
- Renegotiate/refinance debt agreements or obtain other relief
- Introduce business process redesign and realignment
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