Financial Redemption during a Pandemic ?
The current COVID-19 pandemic caused major disruptions to the global economy, placing the financial future of almost all business at risk.
Owners of previously thriving businesses were unexpectedly left to face the challenges of meeting contractual obligations, maintaining their cash flow demands and generally dealing with major disruptions on every level of their business operations.
Keeping the proverbial wolf from the door became the norm rather than the exception.
Sustainable and sensible solutions require a thorough knowledge and understanding of the available financial assistance models as well as the requirements and implications of funding arrangements, all within the context of the unique landscape of every business. Definitely not a task to be lightly undertaken by any single professional, worse still, by a layman business owner.
Baartman & du Plessis Attorneys, consequently, assembled a multidisciplinary task team to extend their existing reach, depth of skill and knowledge, thus making it possible to provide our clients with an all inclusive, agile and consumer centric solution.
The journey to proverbial financial redemption will commence with the financial and risk analyses of your business in order to assist the task team in the compilation of a distress intervention plan. (DIP)
The DIP will include costing control and management measures, potential third party financing, commercial structuring and strategy and potential distress funding.
Costing control and management measures incorporates negotiations with organised labour (unions) to reduce the cost of payroll (pay cuts), possible retrenchments of employees, utilizing tax relief schemes, exposure management, the conclusion of restructuring agreements with current creditors and the fast tracked collection of outstanding debts owing to the enterprise.
Third party financing, in turn, entails the credit verification of the enterprise and the subsequent application for financing through third parties, including commercial Banks, the Guaranteed Loan Scheme for SMME’s or venture capitalists.
The commercial structuring strategy will explore the potential benefits of horizontal or vertical integration, possible joint ventures, mergers and acquisitions as well as capital reorganization.
A significant portion of the DIP will be devoted to the requirements and implications of distress funding (economic support packages) such as TERS, grants from the national empowerment fund, solidarity fund, the debt relief fund, business growth fund or the South African future trust.
The benefits of Business Rescue proceedings and even liquidation (as last resort) will also be considered and explored.
Contact us now to book a virtual consultation from the comfort of your office or home.