Dealing with COVID-19 as a privately owned business

The economic impact of Covid-19 has affected all businesses regardless of which sector they are in. It is clear that this pandemic has detrimental effects on cash flow and requires businesses to take immediate action; others are at a stage where it is essential to adopt contingency plans for a economic downturn. With ongoing support and advice from the Mazars Consulting team, we will help you mitigate effects of this crisis. Below are two approaches to help you manage your business through this crisis.

IMMEDIATE BUSINESS SURVIVAL

Identify immediate steps to close a serious 'cash gap' arising under the following areas:

Quantify the impact

Monitor cash movements of the business.

Determine the 'cash gap'

Assess all available cash resources and lines of credit/borrowing against what would be required.

Prepare the 'cash gap' plan

Determine the support available from the relevant government agencies.
Adopt prudent cost management initiatives.
Consider the temporary closure of non-essential operations.
Release of finance from internal resources and key relationships.
Identify the cash flow impact of the remedial action plan.
Determine if additional funding would be required.

Prepare an information package that relevant government agencies and/or external funding parties may request for which may include:

Latest financial statements/ monthly management accounts.
Summary of the remedial action plan to close the ‘cash gap’.
Revised cash flow statements based on the remedial action plan.
Defined amounts required from external funding sources.
Funding plan to sustain the business for a prolonged period (i.e. 12 – 18 months).

Engage and negotiate with external parties to agree appropriate funding arrangements.

Have the appropriate stakeholders to communicate the key elements of the plan.

PREPARING FOR THE DOWNTURN

Assess the likely impact of the crisis on the business under these key areas:

Sales volume impact

What is the impact on sales volumes and demand?
What are the implications on cash collection?

Staff

Are key people likely to become unable to work for an extended period?
Train and cross-train your staff to ensure work continues, and productivity remains high despite the absence of a key player

Vital suppliers

Is there reliance on key suppliers who are likely to be disrupted, resulting in significant delays to delivery?
Will key customers receive sufficient supplies?

Operations

Are there restrictions on the use of facilities, and can your business model be adapted?
Is it possible to carry out business functions remotely, such as payroll, finance or IT?

Legal and regulatory obligations

Is there a danger of not meeting major contractual agreements and / or regulatory requirements?

DOWNLOAD HERE

First name^*

Family name^*

Company name^*

E-Mail^*

I accept that Mazars will process my personal data for the purpose of handling my request^*

^* mandatory fields

Your personal data is collected by Forvis Mazars in Singapore, the data controller, in accordance with applicable laws and regulations. Fields marked with an asterisk are required. If any required field is left blank, it will not be possible to process your request. Your personal data is collected for the purpose of processing your request.

You have a right to access, correct and erase your data, and a right to object to or limit the processing of your data. You also have a right to data portability and the right to provide guidance on what happens to your data after your death. Finally, you have the right to lodge a complaint with a supervisory authority and a right not to be the subject of a decision based exclusively on automated processing, including profiling, that produces legal effects concerning you or significantly affects you in a similar way.