Cash Management & Working Capital
Cash-flow is the life blood of any business but cash management could be described as its “beating heart”. At DB our team are expert and are well versed in evaluating current management strategies and developing and introducing new strategies to ensure a company is able to continue its current operations with maximum efficiency and maintain sufficient cash flow to satisfy both maturing debt and upcoming operational expenses.
Our work in this sector tends to be focussed on two distinct areas – short term crisis management and working capital enhancement.
In cases where cash pressure is extremely acute and survival of the business is the first priority our team works with management to ensure:
Immediate implementation of new short-term forecasting to improve management’s awareness of cash requirements, be that on a daily, weekly or monthly basis;
A complete review of all cash management strategies to ensure that all possible means of cash generation are optimised;
Instigation and preparation of customised reporting for both internal management and stakeholders;
In addition, our experienced team will provide, advisory support and hands-on assistance where and when required.
The second main area we are involved in is cash and working capital enhancement in either a growing or mature business.
Often a business’ first port of call when there is a need for additional funding is its bank or other stakeholders. However, a more appropriate, action could be to look within its own balance sheet for cash generation opportunities.
In this situation we would look to develop strategies to unlock cash, whether needed to reduce funding requirements or to exploit investment or growth opportunities. At DB our vastly experienced team can evaluate all cash management procedures and marry them to debt and financing needs, then provide customised improvement measures to better manage current assets and both long and short-term financing.
Some of the common indicators of a need to review cash and working capital management include:
- High levels of working capital requirement relative to turnover
- Deteriorating working capital
- Difficulty in managing seasonal fluctuations
These situations are best tackled at an early stage or even pre-emptively and our team is second to none in providing expert advice and innovative solutions.