BUILDING A NEW TREASURY
Quickly & Efficiently to Guarantee Operational Continuity
Setting up a new treasury in the course of a business divestiture, a merger or a takeover, requires flawless operational control.
When setting up a new treasury department, many actions need to be taken in a short space of time.
- Understand the new business being created, including its financial risks, so suitable treasury policies and procedures can be created and implemented from day one.
- Sort out the final rounds of negotiations for new funding facilities.
- Consider the interest and currency risks and determine whether any pre-hedging should be undertaken between exchange of contracts and close of the deal.
- Work on the banking problems that may arise with the change of ownership. This is particularly the case if the new entity has a much higher level of gearing and the existing funding banks are being backed out for a new group of banks.
- New systems such as electronic banking, a Reuters or Bloomberg screen and interfaces with companys’ financial information systems also need to evolve quickly within the first six months.
It is important to prioritise the workload and stay focused.
Redbridge supports companies during the creation of a treasury department, helping to redefine a Target Operating Model that is adapted to the new entity and enabling the treasury team to speedily deploy an operational organisation, thereby ensuring the continuity of the firm’s business.
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