Skip to main content

Business Continuity and Financing

Resetting your business foundations to build a successful future

Smart businesses need a strong foundation: a compelling strategy, robust forecasting, clear communication with key stakeholders, a decisive plan of action and to know that, whatever happens, cash is king.

Resetting your business foundations to build a successful future

Some buildings are built to last; others do not withstand the elements over time. Just as structures built with age-old, classical principles are often the most resilient, the fundamental disciplines underpinning business success remain unchanged, even in the face of the COVID-19 induced economic downturn.

Business continuity and financing

What does this mean for business

In a turbulent economy, cash is king. Keeping the lights blazing and your doors open to new opportunities resides on your ability to access capital and maintain confidence and liquidity as needed. Driving efficiencies through digital innovations, releasing cash from underutilised assets and ensuring that debt levels are managed appropriately will ensure your business remains clear of the key impediments to momentum and will make refinancing for ongoing maintenance, innovation and growth far easier.

While keeping a close eye on your performance and financing, it pays to continually challenge the status quo. Just like a leaking roof can create damp which spreads with no outward signs that anything is wrong, one underperforming division or product – if not addressed quickly and decisively – can bring bigger and more profound problems to your business, that would otherwise require major renovations instead of quick fixes. And just as some architectural styles today look awkwardly dated, some business models were quite obviously designed for another time and may be best dismantled and rebuilt, rather than repaired or reinforced.

Above all, your business needs to be strong and resilient in the face of the inevitable season of storms that will continue to batter the global and local economy. COVID-19 has radically reshaped the environment in which executives need to view their organisation’s fundamentals and future as they renovate or rebuild for a new normal.

- Andrew Grimstone, Global Restructuring Leader

Industries

Much of the attention has gone to the heavy impact the pandemic has had on certain businesses, most notably those tied to travel, live entertainment and bricks-and- mortar (non-essential) retailing. However, there have also been winners. Grocery stores have seen strong new demand and largely digital businesses are surging, particularly those focussed on working-from-home, entertainment, home delivery and education.

Consequently, businesses will be emerging from this crisis in very different positions. Some will have been hibernating, others will have been booming. Some will be advantaged by the dramatic changes in consumer behaviour that in many instances seem likely to be lasting, while others may be badly disadvantaged.

This page compiles insights on a range of sectors that can help you act in this crisis with empathy and action.

Explore more by viewing our sector specific insights here.

Covid-19 has decimated the industry and has required airlines to make structural changes to survive, recover and ultimately thrive. Both substantial capital & large-scale transformation are required to address these challenges.

As the COVID-19 pandemic continues around the world, many global aerospace and defence industry companies are feeling the impact during this uncertain time.

The automotive sector has weathered many predicaments over the past decade. This experience and resiliency have equipped the sector to overcome today’s unprecedented crisis brought by COVID-19 and the aim to return to a new “normal”.

Explore more insights:

With stores shuttered and millions of associates sidelined during the pandemic, a tough reality has set in for the vast majority who depend on foot fall to drive revenue. Disruptions in stock, supply chain and merchandising will require an infusion of product, capital and customers to rebound. However, retail is a notoriously resilient industry and as the high street starts to open up, leaders must act to bolster brand loyalty, minimise downside exposure and kick start innovation to recover and thrive.

Explore more:

The COVID-19 pandemic has affected the commodity markets in a variety of ways. Company operations have been affected through isolated outbreaks and government mandated shutdowns and the demand for many commodities remain low with a lower near-term demand on the horizon.

The impact of COVID-19 and the oil prices war are proving to be a two-pronged crisis for oil, gas, and chemicals companies. Oil prices are dropping due to failed agreements on production cuts and the need for chemicals and refined products is slowing from industrial slow-downs and travel restrictions in the wake of this global pandemic.

COVID-19 has impacted business in ways and at a pace for which there is no historical parallel with strain on both supply and demand. A majority of the businesses in the industrials sector are facing falling revenues; operational challenges, including issues with liquidity and their supply chain. uncertainty about the nature, timing and speed of the recovery.

Did you find this useful?

Thanks for your feedback

If you would like to help improve Deloitte.com further, please complete a 3-minute survey