A&M Pivot to Recovery: The Public Company and the 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