The enterprise value specialists at Ceibass have been busy talking to lawn & landscape owners about what to do now in light of the Covid 19 situation.
“As we mentioned last week – NALP is a great resource. Visit their website daily for updates. The most important thing to stay vigilant on, other than your safety and the safety of your employees and customers, is cash flow. Cash is king right now,” said Tom Fochtman. Ceibass CEO. “Ask your bank for assistance with your loans – interest only or a complete deferral of payments for 6 months. Produce a realistic budget then run a worse case scenario of that budget. If you have a bank line, draw it down keep the cash available. Get on your accounts receivables and get them up to snuff.”
The enterprise values specialists at Ceibass went on to add:
Examine every expense. Challenge everything.
The most powerful part of the CARES ACT is the payroll grant money. Maintain your payroll and the loan becomes a grant and is forgiven. It’s complicated but get on top off it. Get help to understand it and work the process. It is worth it.
Revise your sales forecasts based on the most current info. Check out pending projects to see if they are “paused,” “moving forward,” or “DOA. Look to incent projects to get them to close.
Conserve cash but don’t be a jerk. Watch out for burning bridges.
Be watchful for opportunities. Do you have a competitor who might be in trouble? Maybe call on their customer if appropriate.
Consider lowering salaries of non-essential personnel for a short period of time.
Make sure your cash flow pro formas work well. Stay close to the reality of your cash.
Lean on your advisors in uncertain times like these. Call us for a free consult. We are here if you need us.
