improved cash generation
Working capital becomes especially important when a company is growing, activity levels are increasing, cash flow is under pressure or inventories are building up.
Typical situations include:
Ernest Partners analyses the company as a whole, not only its working capital position.
We look at the financials, business plan, cash flow position, strategy and organisational structure to understand the broader context in which working capital issues arise. If no business plan is available, we can help build one.
Within this broader analysis, we focus on the key components of working capital: receivables, inventories and short-term liabilities. This allows us to identify where cash is tied up, how this affects liquidity and where improvements can be made.
Based on this analysis, we support management in defining the right priorities to improve working capital management and strengthen day-to-day liquidity.
We work in three main phases: analysis, pitching and closing.
We start with a comprehensive analysis of the company. This includes its financial situation, business plan, budget, cash flow, strategy and organisational structure.
Within that broader review, we analyse the working capital position, with a focus on receivables, inventories and short-term liabilities. This allows us to identify where cash is blocked and where liquidity pressure may arise.
Where external financing is required, we also prepare the financial materials and financing presentation, including the company’s financial situation, working capital needs, key business risks and the actions taken to mitigate them.
Better working capital management gives the company more control over its day-to-day liquidity.
The main results are:
Ernest Partners works side by side with clients throughout the process, from initial analysis to the final outcome.
Our team combines financial expertise with hands-on experience. We help clients understand their working capital position, identify where improvements are possible and take the right steps to strengthen liquidity.
Supported the CFO and finance team in the negotiation with their banks of the amendment of the existing €175m facilities and extension of a new €50m facility
Optimizing the client’s working capital structure resulting in an increase of €6 in available financing facilities.
Securing additional bank relationships in trade finance in Belgium. Support in finding €5m Belgian-based CapEx financing and €15m working capital financing for recycling plant projects in India
Have a question or want to discuss a financing challenge? Send us a message and we will get back to you as soon as possible.
Build cash flow visibility through forecasts and scenario analyses, and define backup solutions to reduce liquidity risk.
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