Business Plan & Contingency Testing

In uncertain times, the building of a business plan which allows for flexible modeling is essential to get a grip on possible outcomes. Parameters, assumptions and sensitivities are prone to rapid change as the distressed world evolves.

The business model that we develop for our clients will meet these flexibility requirements. The resulting business plan will be well substantiated and is therefore a powerful negotiation tool for achieving the financing goals. It will also take into account the criteria that credit institutions generally use in their considerations.

The flexible modeling will allow to develop multiple scenario business plans to get a grip on miscellaneous “what if” scenario’s. This will provide necessary guidance at a time that decisions need to be taken quickly and with little room for errors. Resulting contingency testing will bring in evidence the outcome of different scenario’s and their degrees of risk.

Because of its compelling concept, it will be a convincing instrument to communicate the business case to the stakeholders and to the lenders in the first place.

It is also a reflection of the intimate knowledge and understanding by management of the key drivers of their business and the way these react to external and internal events. This allows them to keep a close control over the management processes.

In the event that a reorganization under continuity legislation becomes a reality, the available documentation under the business plan, tested for contingencies can serve as a basis for a faster, more efficient and successful reorganization process.