Helping manage liquidity and stabilize business
COVID-19 has created unprecedented disruptions for companies across sectors and geographies. We provide trusted leadership in such urgent and complex situations, helping clients solve immediate challenges and sustainably improve their businesses over the long term.
Particularly in the face of the COVID-19 crisis, we are working closely with clients to address individual concerns, including short-term cash flow, debt covenants and tax impacts under various scenarios, as well as stabilizing the business.
What EY can do for you
We help clients make better and more informed decisions related to value recovery, preservation or creation — with a clear focus on execution for your particular situation. As clients face abrupt sales declines, credit concerns and supply chain disruptions, we are helping manage liquidity in the following ways:
- Extending liquidity runway
- Maximizing one-time revenue opportunities
- Realigning and reducing costs
- Employing working capital crisis management techniques; idling cash-burning operations
- Deferring capital expenditures/R&D
- Developing crisis contingency plan
- Identifying temporary vs. normal-course performance
- Sensitizing cash flows for risk outlook and contingency plans
- Aligning operational plan and developing KPIs
- Building real-time reporting dashboard and KPI tracking
- Providing stakeholder management
- Prioritizing and negotiating needs to enable short- and long-term viability
- Communicating concise plan to suppliers, customers, lenders, equity sponsors, government, employees
- Establishing credibility and maintaining control
Other ways we are helping clients manage through the current market environment:
- Rapid crisis-impact assessment — assessing areas across functions, including employee health, short-term liquidity, government incentives impact, insurance, productivity of remote workplaces and stakeholder communications
- Crisis response center — skilled crisis management, communications orchestration and surge resourcing of specialized resources
- Contingency/business continuity planning — assessing impact to earnings for the next six quarters, including developing a strategy to bridge any forecasted shortfalls in earnings for each quarter generally, and more specifically six months out
Below is additional information about how we help clients with their unique challenges — from value recovery, to value preservation, to value creation:
Tax considerations in value creation, preservation and recovery
We advise in implementing commercial transactions that balance the material tax considerations with your overall business objectives. Learn more.
Contact us for immediate support through these volatile and uncertain times
We have a clear view of the critical questions and new answers required for effective crisis management, business resilience and continuity.
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