Cash for growth – Unlocking hidden resources for growth
Over EUR 400 billion in funds are needlessly lying idle at Europe's top 200 companies. These are funds that could be pumped into the impending economic boom. This is the finding of our recent study that analyzed companies from the automotive, chemical, consumer goods, engineered products & high-tech, telecom & IT, pharmaceutical and services industries.
Internal potential needs to be exhausted before considering outside financing sources. 20% of idle funds involve inventories, one-third can be found in the accounts payable and receivable and almost half are in fixed assets. Over half of these can be tapped over the short term.
To do so, the business relationships and value chain need to be examined, and flexible corporate structures have to be considered.
