In uncertain times, no one should take for granted the success of an initial plan – it’s always wise to have a contingency strategy in place in case the primary course of action is unsuccessful.
Not only does this provide the best chance of continuing business success, it also demonstrates forward thinking by directors. With an ever-present risk of financial decline in our global economy, contingency planning offers confidence to all parties with an interest in a company’s ongoing success.
Contingency planning typically guards against potentially disastrous situations – the death of a key member of staff, a cyberattack, destruction of a key asset (e.g. premises), or general mismanagement. However, it can also be used to maximise the potential of unexpectedly positive scenarios, like a sudden influx of orders or rapid company growth.
In both cases, having a contingency plan in place allows companies to proactively manage significant business change, rather than reactively trying to make the best of a new situation.
At BTG Advisory, our contingency planning covers the full range of business sectors and circumstances. It includes schemes of arrangement, allowing for companies to be restructured without formal insolvency proceedings; accelerated M&As to maximise the value of an exit from a business; decline curve planning to ensure business actions happen at the right point in the trading cycle; and raising fresh equity for growth, where we work through the pros and cons of available options for raising capital.
Most important of all, we take an individual approach to specific circumstances and challenges: every contingency plan we create is entirely bespoke.