Patrick Gramling: 7 Experts on Activating Liquidity

Treasury plays different roles in different organizations, but many companies, particularly global organizations and those with complex funding requirements, have found value in making treasury a more strategic player in cash and liquidity management. In looking more closely at what treasury has to offer, it’s apparent that its value goes beyond just greater operational efficiencies.

 

 

“As the company improves its ability to manage its
cash, we can put more cash to work.”

In our business, treasury handles everything related to cash and working capital management, including accounts payable, accounts receivable and foreign exchange risk management. We put on events all around the world, and the cash these events generate funds new events. The more cash trapped on our balance sheet that we can unlock, the more events we can acquire without having to find other sources of capital.
This process increases the value of the business because as the company improves its ability to manage its cash, we can put more cash to work. We put on 250 events a year throughout the world and we have more than 100 bank accounts around the world. At any given time, we have a lot of cash on the balance sheet. Our growth is based on our ability to either build events from scratch or acquire existing events. Value grows as we grow the business, so being able to unlock trapped cash is a way to continue to grow our business.

This is an excerpt from 7 Experts on Activating Liquidity. The eBook was generously sponsored by Kyriba.