A&M on Pivot to Recovery: The Public Company and PE Perspective
What determines success as companies move from “Pivot to Cash” to “Pivot to Recovery” in a COVID-19 world?
In this episode of A&M's Global Webcast Series, Managing Directors Markus Lahrkamp of Private Equity Performance Improvement and Ron Orsini of Corporate Performance Improvement, share their insights on the important action steps PE-backed and public companies should take now to ensure they survive the current lock-down and have a strong return to market once the lock-down is over.
Some key concepts that Markus and Ron address include:
Cash is King
- Prioritize liquidity during every phase of the crisis
- Link 13 week cash flow to Sales & Operations Planning
- Bend the Fixed Cost Curve
“Clean Sheet” Approach
- What are necessary vs. non-essential costs
- What cash levels are needed to run the business
- Many businesses will have to push the “reset” button to survive this crisis and come out ahead
Scenario Planning Is Critical
- Your next move depends on your industry, your geography, your market situation
- View the business through the customers’ eyes
- Prepare for the worst, and adjust if it gets better
Contact Markus or Ron if you have any questions or would like to discuss these insights further.
Markus Lahrkamp
Managing Director, Private Equity Performance Improvement
mlahrkamp@alvarezandmarsal.com
917.209.9956
Ron Orsini
Managing Director, Corporate Performance Improvement
rorsini@alvarezandmarsal.com
832.768.4317
