COVID-19 #13 Liquidation of negative net equity companies
In many groups, the current year financial performance will not meet the budget set at the start of the financial year. The current crisis is immeasurably affecting the economic landscape. When companies are no longer capable of funding their own operations, shareholders may be called to provide financial support. In circumstances like these, it is
COVID-19 #9 Factoring in times of corona
In these turbulent times, issues with unpaid invoices or late payment may not only cause valuable time to be spent on accounts receivable management, but equally cause working capital levels to skyrocket. In order to mitigate the financial impediment of no (or late) payment and to alleviate their financial departments from additional administration, taxpayers may
COVID-19 #8 Sale of non-core or distressed businesses
Successfully raising cash through the divestment of non-core assets or businesses requires careful consideration, especially in a situation of financial distress. Although from a sell-side perspective a share deal is often preferred (click here), sellers may still be tempted to engage in an asset deal in their quest to realise the best possible outcome. Various
COVID-19 #7 Carve-out and sale of non-core or distressed businesses
In the current climate, it is expected that companies in a wide variety of industries will be confronted with a significant drop in sales volumes, possibly causing faltering cashflow positions or even cash crunches. Although the Belgian government, in concertation with financial institutions, are trying to stem the bleeding with short term measures, such as