The COVID-19 pandemic continues to impact our lives on all fronts – business, family, personal, and otherwise. The unpredictability of the pandemic’s toll on public health, governments’ policy responses, and the associated economic ramifications have caused significant disruptions to pre-existing business models and financial markets. As a result, businesses have had an increasingly difficult time maintaining profitability and planning for an uncertain future.
While it is a best practice to regularly evaluate a business’s health and operational capabilities, it is especially important given the current business climate. Carrying out a rigorous and honest assessment will provide leaders with data critical to crafting pragmatic business models that best situate companies to survive COVID-19 business disruptions, and in some cases, even identify and capitalize on new business channels and opportunities for growth.
Engaging in this analytical exercise should also necessarily lead to discussions regarding the relative need for short and long-term financing; whether the business should negotiate the restructuring of its financial obligations to creditors; how the company can address operational concerns to improve cash flow and shore up liquidity; if necessary, how the company should prepare itself for a successful business reorganization via a Chapter 11 bankruptcy; and, if the company does not appear to be viable going-forward, the most effective way to wind down business affairs to preserve as much value for the owners as possible. While these are difficult discussions to have, they are necessary to avoid throwing good money after bad. This is especially true in unprecedented times like these.
Galbut Beabeau’s business attorneys are experienced in assisting financially and operationally distressed or disrupted companies across a variety of industries to effectively navigate and solve their business challenges. Our attorneys bring to bear diverse backgrounds in finance, business strategy, communications, PR, and intellectual property to provide comprehensive and strategic counseling. We take great pride in the fact that our clients look to us for guidance and results in their most trying times – financial and otherwise.