General BMA methodology and dedicated intervention
1. Inventory of the problem, diagnostic and hierarchisation of actions to be taken. Acquisition of knowledge of the economic environment of the enterprise and its organisation and information system is conducted on the basis of analysis of documents communicated and commented by general management, line managers and staff in charge of IT. The customary advisors of the enterprise are also consulted.
This approach involves understanding the problems at the source of the difficulties (positioning of the company in its market, profitability, isolated cash shortages, structural or economic difficulties, etc.) in order to target and hierarchise actions to be undertaken, both in investigative and operational terms.
It is based most frequently on examination of the composition of the financial results and structure of the company and analysis of its cash position, the components of an initial financial diagnosis.
2. Estimated financial analysis. On the basis of the initial diagnosis, this phase involves establishing the parameters of the forecasting tools modelled by BMA, to adapt these tools relevantly with the business activity of the enterprise and its quantified information sources. Basic historical and forecast data are then entered or transferred, and converted into operational and cash forecasts identifying conditions for restoring a balanced financial situation for the company. These tools are also used to stimulate the impact of changes in forecasting assumptions regarding the main operating and financial structure aggregates, and the sensitivity of the economic model to the structuring data of its environment.
3. Participation in the definition of ways and means for recovery from a crisis situation. Recovery from a crisis invariably generates funding requirements which general management must identify with its shareholders and customary financial partners, but also with third parties, investors and lenders, in certain cases associating the company's creditors, or some of the latter, within the framework of amicable or collective legal procedures. We participate actively in definition of the legal framework adapted to meet financial constraints, working together with the other specialist advisors of the enterprise, essentially lawyers and legal representatives, under the control of those jurisdictions to which the matter has been referred.
4. Support for management during the period of recovery actions. Recovery actions must be coordinated and their financial impact measured. The multidisciplinary approach of the BMA professionals facilitates the setting up of tools and procedures for managing financial data, an essential requirement for management for implementing the recovery plan reactively and flexibly, and informing the other parties involved of execution of the plan and the position with their interests. The involvement of BMA in the activities of institutions and entities contributing to the treatment of financial distressfor enterprises encourages the establishment of relations of confidence with the authorities involved in the amiable or collective legal procedure in cases where the company has recourse to said authorities.
5. Dedicated intervention. Apart from assistance to enterprises in difficulties applying the methodology described above, BMA undertakes missions specific to the context involved: analysis of causes and origins of difficulties, technical approach to the payment suspension date, examination of commercial and financial links between affiliated companies, identification of material evidence which may characterise management errors, information centres and prudential saving of IT applications and files, organisation of physical and digital data rooms, etc.
