Page 3 - LeumiABL-Viability-Newsletter-Spring-2020

If anything has come out of this dreadful epidemic, communities
REGIONAL INSIGHTS are closer together, people now know their neighbours and
there are many well-honed lawns! Some have even had their first
experience of Zoom, Teams and similar applications.
As we all face unprecedented challenges as a result
of the current Coronavirus pandemic, our Regional Sales Here at Leumi ABL, we remain open for business, coiled like
Directors share their views on: springs for when advisers need us to react.
n Possible changes at a regional level as a direct result
of the Covid-19 crisis JOHN WALSH
YORKSHIRE & NORTH EAST
n What businesses might need to do differently to
exploit new opportunities post lockdown
jwalsh@leumiabl.co.uk
n What businesses will be looking for from finance m: 07824 486 818
providers as they seek to restart/ relaunch/recover
post Coronavirus
Covid-19 has had a rapid impact on sectors in the North East
n How our experience with this pandemic might and Yorkshire such as aerospace, travel, high street retail, food
change the way we work. produce and steel, some of which have seen a mix of a downturn
and a steady increase in revenues since C19.
Mature, well-established businesses with strong balance sheets
made up of assets such as receivables, property, P&M and
MARTIN RISMAN
LONDON inventory will be well placed to review their current funding
partnerships with their professional advisors to enable them to
mrisman@leumiabl.co.uk recover and/or re-launch.
m: 07717 783 497 Leumi ABL is well placed to demonstrate its
approachable, flexible and swift process to refinance
SMEs and to work with management teams to exploit
London will be well placed to emerge strongly from the crisis new business opportunities post lockdown.
as recovery will be led by investment firms currently sitting on
significant dry powder. Opportunities will arise through both The challenge for all ABL providers will be how third party asset
restructuring and revitalised M & A with debt leverage being key valuations may be affected.
to optimising a robust funding structure. Cash will remain king.
Like many of my colleagues, we’re all experiencing the lack of
Quality of management information and regular personal interaction to discuss trends and activities with the
interaction with funders will be critical to business professionals within the Region’s deal making community.
survival as we emerge from the crisis.
AUSTIN THORP
Businesses will require, of both prospective and incumbent NORTH WEST
Finance providers, a level of service that delivers speed of
response, certainty of outcome and clarity in communication. athorp@leumiabl.co.uk
In the “new norm” of social distancing, lenders must ensure
m: 07769 361875
that both written and verbal communication meets borrower
requirements to make quick, correct decisions.
All sectors have been impacted, with a short-term boost to much
JASON HOLLAND of the haulage and food sectors. Uncertainty around income
MIDLANDS and jobs is likely to result in reduced consumer confidence,
and this will affect both manufacturing and service sectors - key
jholland@leumiabl.co.uk components of the North West economy.
m: 07824 486 820
The immediate focus for business is short-term cash
management. A liquidity crunch is likely as business costs come
back on stream, short term support will need to be repaid and
With a large automotive presence influencing the supply
additional working capital will be needed as business ramps up.
chain, the contraction of the Midlands economy is leading to
the depletion of cash reserves or increase in debt. The return With important strategic decisions to make,
to full capacity and growth will require cash that has already management teams must be able to
been utilised on the downward curve to maintain a company’s demonstrate that they have considered
existence. the key factors in funding a return to growth,
After a sudden shock in March, there are indications that M & A have developed a plan to support this
activity will recover quickly and Restructuring professionals have and have the ability to manage challenging situations.
been reporting a marked uptick in discussions with businesses.
Businesses that may have enjoyed strong cash reserves previously
M & A and Restructuring professionals will work well together to
may now see ABL as a solution to fund growth at a time when
provide options to companies.
access to more conventional funding may be difficult to achieve.
There will be opportunities for both equity Leumi ABL has a wealth of experience in structuring both working
and debt providers; the ABL market could see capital and acquisition finance transactions and is well placed to
an inflow of new clients who have previously not support potential prospects in achieving growth plans.
considered the ABL route. continued over >>