Liquidity Management

Prepare for cash needs and uncertainty

Liquidity management is about maintaining sufficient liquidity to meet operational needs and deal with unforeseen events.

At Ernest Partners, we help companies gain a clear view on their current and future liquidity position. We build cash flow visibility through forecasts and scenario analyses, and help identify sustainable financing solutions where needed.

The goal is to avoid liquidity shortages, reduce financial risk and improve financial resilience.

Discuss your liquidity position

When should you look at liquidity management?

Liquidity management becomes especially important when management needs a clearer view on future liquidity and possible risks.

Typical situations include:

there is limited visibility on future cash flows
cash pressure is increasing
the company needs to prepare for investments
market conditions are volatile
management wants to anticipate possible liquidity shortages
the company has no clear backup financing solutions
unexpected events could put pressure on available liquidity

How Ernest Partners can help

Ernest Partners analyses the company as a whole, not only its liquidity position.

We look at the company’s financial situation, existing debt, business plan, budget, cash flows, strategy and broader context to understand where liquidity needs may arise.
If needed, we help build or refine the financial model.

Within this broader analysis, we focus on cash flow planning, stress testing and scenario analysis. This allows us to assess how changes in key assumptions may affect the company’s liquidity position.

Based on this analysis, we help clients define the right priorities to secure sufficient liquidity and manage uncertainty. Where external financing is required, we help identify sustainable financing solutions.

Discuss your liquidity management needs

Our approach

We work in three main phases, depending on the outcome of the analysis: analysis, pitching and closing.

Analysis

We start with a comprehensive analysis of the company. This includes its financial situation, existing debt, business plan, budget, cash flows and current context. We review the investment or project under consideration and assess the current context of the company. Where needed, we build or refine the financial model.

Within that broader review, we focus on cash flow visibility, scenario analyses and stress testing. This allows us to identify potential liquidity risks, assess future cash needs and determine the right priorities.

Where external financing is required, we also prepare the financial materials and financing presentation, including the company’s liquidity position, future cash needs, key business risks and the actions taken to mitigate them.

Pitching

If external financing is required, we approach selected financiers and present the company’s liquidity position, future cash needs and financing need in a clear and convincing way.

We manage discussions, meetings and Q&A with financiers. Where relevant, we explore several sustainable financing solutions in parallel.

Closing

If external financing is required, we advise the client on the final financing structure and support decision-making.

We assist in aligning terms and conditions with all stakeholders, obtaining credit approval and negotiating financing documentation. We remain involved until the transaction is successfully completed.

What you gain

Better liquidity management gives the company more visibility and control over current and future liquidity.

The main results are:

clear visibility on current and future liquidity

better cash flow planning

improved scenario analysis and stress testing

reduced risk of cash shortfalls

better preparation for uncertainty and unexpected events

clearer backup financing options

stronger financial resilience

Why Ernest
Partners?

Ernest Partners works side by side with clients throughout the entire process, from initial analysis to closing.

Our team brings experience from both sides of the table, with former CFOs and former bankers. This allows us to understand lender expectations and adapt financing requests accordingly.

Get to know us