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Banks do it. Why not you? It may be time A/E/C firms stress test their own P&L.

The current economic downturn brought about by the Coronavirus pandemic has firms facing unprecedented financial uncertainty. While many weathered the initial lockdown, there’s a great deal of doubt about future project prospects. Will there be a fast V shaped recovery? Or will the recovery be drawn out over many years in the future?

While some market segments may collapse because of lack of government spending, consumer reluctance or fear, or policy missteps, what can we do? Stress testing will help you plan. Such a financial exercise allows you to easily evaluate the effects of non-labor overhead cost cutting measures, temporary salary reductions, and if need be, RIFs, in the face of reduced demand for services and potential client induced discounts. This technique will also point out ways to improve long-term profitability, as well as your firm’s valuation.

Meet with Brian Flynn as he covers:• What is financial stress testing and how does it work?• How will such an exercise help forecast and plan • How can profit enhancing techniques improve resistance to a potential downturn• How best to significantly improve your long-term profitability and the value of your business

About the presenter:Brian Flynn, P.E., BCEE has spent more than 40 years in the engineering and environmental industry. He was one of the original founding partners of global environmental consulting firm ERM Group and the President of ERM-Southwest in Houston, Texas.