Stabilization in the crisis
In many companies, sales have now dropped significantly, and liquidity reserves are increasingly being used up. Not every company has enough reserves to cushion an extreme situation over several weeks or even months. State corona aid can partially avoid, postpone or reduce impending liquidity bottlenecks - but only for a certain time.
For this reason, liquidity-securing measures that stabilize the company in the short term are particularly in demand for companies that are particularly affected. The classic crisis management tools reach their limits very quickly due to the unique scope of the crisis. It makes little sense to finance sustainable losses through KfW loans or to lower material prices when the supplier no longer generates sales. So what alternative options do the entrepreneur have to keep his assets in the “worst case” scenario?
Portfolio adjustments are the order of the day. Nothing brings more money to the cash register than the sale of parts of the company that may have been strategically on the “watchlist” anyway. It may now be a good time to prepare transactions carefully and realize the still quite high corporate values before the M&A market is flooded with emergency sales in a few months. When designing the M&A process, the focus should be on high transaction security and on the selection of uncomplicated investors who can act quickly and ideally do not rely on outside capital to pay the purchase price.
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