CFO Perspective: 120 Day Survival Plan

Checklist to Retain Enterprise Value

by Gary J. Kulesza, D Partners, www.linkedin.com/in/garykulesza   

Gary is a hard charging, seasoned executive, operations and finance (CEO, COO, and CFO), known for Driving Positive Change. Gary, as an Operating Partner, has extensive experience in managing transitions including performance challenged situations, mergers and acquisitions, joint ventures, refinancing, and consolidations.

During extreme economic uncertainty a business must be prepared to have both a Deliberate defense and a Focused offense.

Defense Key points:

  1. Cash is King – Tactical cash management is an essential strategy to survive any crisis.
    • Collections will slow down. Be persistent with your customers.
    • Look for any opportunity to stretch your payables without causing permanent harm to the business -every additional DSO (Days Sales Outstanding) matters.
  2. Expenses – Review all expenses non-emotionally.
    • Across the board cuts will have some long-term negative impact so spend the time to review costs and make a deliberate tactical plan.
  3. Reduce inventory.
    • Be tough. Take a survival approach. This is not business as usual.
  4. Communicate with your organization.
    • Be that voice for the folks in the trenches. That voice knows where the opportunities are.
  5. Hug your banker.
    • Keep your banker informed on the actions you’re taking.
    • Make sure you don’t give them any surprises.
  6. Fully drawdown all available lines of credit.

Offense:

  1. Every economic crisis creates opportunities.
    • Sales is always a priority.
    • Look for those opportunities.
  2. Focus sales efforts here.
    • Revise sales or performance plans.
    • Pay on cash collected business.

Defense Preparedness starts with assessment and monitoring in support of prevention, mitigation, preparation, response, or emergency evacuation and recovery. Let’s get our businesses to the other side.

Leadership Reimagined! D Partners is an already assembled high-performing CxO team keen on delivering expected results. www.dp-llc.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

© 2020 D Partners .