Shoppers have begun to return to the high street. Pubs and restaurants have tentatively reopened their doors. The economy, slowly, has begun the process of getting back on its feet. Following the financial crisis in 2008 we saw a 6% drop in UK GDP across 5 quarters, compared to some forecasts of over double that decrease in 2020, illustrating the severity of what we’re facing. However, the big difference this year is that there is more liquidity in the market to enable innovative restructuring solutions that aid the recovery. The route to recovery is unlikely to be smooth and businesses need to be in the best possible shape for the journey – and that means focusing on four critical areas before everything else.
The country’s businesses have emerged into a new world, with different rules and customers and employees who have profoundly changed their behaviour. Digitisation has accelerated and supply chains are disrupted. Economic conditions are – to say the least – challenging, and there will be many unknowns to navigate in the months and years ahead. But there will also be many opportunities for good businesses.
Our experience working with clients over the past few weeks is that there are four critical elements that all businesses should focus on, and formulate a clear plan to address. We think of these like the wheels of a car – unless all four are in the best possible shape, even the most powerful vehicle won’t get anywhere:
These four elements are equally vital to survival and recovery and need to be managed simultaneously; a business could do three out of four exceptionally well but still fail if it doesn’t adequately address the fourth. Or to put it another way: If one wheel comes off, the car will inevitably crash.
Our teams are working with clients to manage all four elements in a multitude of ways, making sure businesses are in the best possible shape for the months to come. We help our clients to overcome complex, financial, operational and strategic challenges by delivering pragmatic, hands-on solutions at pace. We treat all stakeholders and individuals with dignity and respect, recognising that it is not just what we do, but how we do things that make a difference.
Over decades, we have developed market leading restructuring capabilities, the strength, breadth and depth of which enable us to deliver end-to-end solutions. We draw on the expertise of our colleagues from Tax to Consulting and across the firm to offer clients the specialist knowledge they need. Whatever your unique situation, we can help.