Cooperation as an instrument of protection against the crisis

The coronavirus is affecting the economy dramatically at an unprecedented pace. There are companies which have to face dramatic and sudden sales slumps and are constantly struggling with dwindling liquidity, increasing debts, and the dismissal of employees (e.g. in retail trade, craft businesses). But there are also companies which are confronted with a dramatic increase in demand for their products, which may last for a limited period of time, and which are facing major challenges in both production and logistics (e.g. health sector). Both groups are forced to act swiftly and find their way through the current crisis situation by taking measures that are appropriate for ensuring a lasting continuation of the business as a going concern. Both groups have one thing in common: they are struggling with the lack of (currently) missing structures in their companies and need to adapt their business models immediately to a greater or lesser extent in order to make the "best" out of the current situation.

Cooperation can help

The excellent advantages of cooperation are that

• existing synergies between companies are used;
• resources are bundled;
• know-how and ideas are exchanged, and
• risks can be diversified and mitigated.

In the current crisis situation, businesses can now take advantage of the foregoing benefits as these concern exactly the aspects that are urgently needed in view of the business situations described above. It is not accidental that cooperation is an appropriate means of generating growth and market penetration, in particular for start-ups, to be able to meet the demand at all or to strengthen the organisation and administration. In these times of crisis, large companies have recognised this already – in this connection we would like to draw your attention particularly to the cooperation between McDonalds and ALDI which entered into a personnel partnership. This received only minor media coverage.

One of the most valuable advantages of cooperation as a crisis instrument is that it can be quickly agreed in contracts and applied in practice – it is not necessary to formally establish a joint company, even though this is a frequent result of successful cooperation.

Our 6-point plan for your cooperation efforts:

1. Check the need and define the field of cooperation;
2. Identify and win potential cooperation partners;
3. Check the admissibility of the cooperation;
4. Clarify the legal framework among the partners;
5. Negotiate and set out in writing cooperation contents and cooperation agreements;
6. Monitor the cooperation in ongoing business.

The experts from our business units will be happy to help you examine cooperation options within a short time and draft targeted legal documents. We would be happy to bring you together - contact us!