COVID-19: Business survival and preparing for the upturn

THE CHALLENGE

The rapid and global spread of Covid-19 eclipses other recent pandemics in both size and scope. Although the pandemic is first and foremost a public health issue – demanding a deathly human toll – it also disrupts millions of people’s lives. It is clear that the economic impact of the virus is beginning to emerge and is far-reaching.

In the face of certain challenges and a wide panel of risks and uncertainties businesses are confronted with, entrepreneurs might be rightly concerned. Anyhow, history learned us a number of lessons. In view of that, governments and (central) banks are taking the deemed initiatives to tackle a full downturn and redoubted L-type recession by keeping the recession in the shortest U-form as possible.

The Belgian government, regional governments and the national Bank of Belgium – lead by the decisions taken by the ECB – are taking the deemed decisions to provide to Small and Medium Enterprises:

• the required liquidity in the market to avoid credit crunch and;
• a temporary support to transfer part of its fixed expenses to the state budget to support employment in the long run.

The latter is financed again by the central bank through money creation in the eurozone, as this is also done in other economies.

MAZARS’ RESPONSE

Mazars has developed a multi-disciplinary methodology to assist Small and Medium Enterprises (hereafter SME’s) in their business continuity planning, through:

• the performance of a detailed analysis of cash gaps that may arise from the economic crises;
• the analysis and roll-forward of your cash flow planning, incorporating the impact of regulatory support solutions aiming to tackle cash gaps and/or cost reduction programmes; and the support to execute upon those measures;
• the support of SME’s in their aim to demonstrate their viability in view of obtaining a moratorium on their loans and/or new loans by demonstrating their viability as provided in the regulatory provisions;
• advise SME’s to ensure continuous compliance with regulatory requirements and;
• the development of restructuring plans as a result of business process improvement, publicly and privately debt restructuring plans, ...

In attachment below you will find the complete presentation about Mazars' response to COVID-19: Business survival and preparing for the upturn.

Don't hesitate to contact us for more information.