“So that a business in crisis can be protected from serious harm, one clear direction must be chosen as early as possible. We help businesses in rehabilitation and restructuring as competent and experienced partners. Find out more about our services.”
- When is it time for reorganization or restructuring?
A prudent management monitors its own business development critically at all times and it can react quickly if in doubt: it can consult restructuring experts as soon as the first warning signals appear. This way, it is prevented that the situation is exasperated and the basis for a solid and often prompt solution is created.
These typical signs of crisis should be looked out for:
- Continuous downturn of sales revenues and profit
- Delayed payments
- Rising debt
- Deterioration of the market position
- Lacking liquidity
- Loss of customers and suppliers
- Slowing down of operating processes
- Increased number of complaints
- Difficulties in retaining employees
Do you have questions relating to rehabilitation and restructuring? You are welcome to contact us.
Restructuring and rehabilitation – making use of opportunities
A crisis at first is always an unpleasant situation of course: Expectations are not met, targets are missed, insecurity, or perhaps even fear is spreading in the management and among the staff. We, however, want to help entrepreneurs with our expertise to view a crisis as an opportunity. After all, resolute restructuring can make enterprises competitive again and secure the future of their business and their employees.
This is how we and our network provide support for rehabilitation and restructuring.
- We evaluate the chances of success of restructuring
- We review existing restructuring concepts legally or we develop own approaches.
- We provide advice for the implementation of measures or we become active ourselves
- We develop alternative scenarios of a restructuring
- We implement restructuring in compliance with labour law
- We assist in corporate transaction during the crisis
Do you have further questions about reorganisation or restructuring of a business? Is there concrete need for support? You are welcome to contact our experts.
- Conscientiously check and prepare remediation concepts
A restructuring plan is the basis for all further measures. It must be solid therefore – both in a legal as well as in a financial perspective. We will readily subject any already available plans to a critical review or draft our own plans in accordance with the valid IDW S6 Standard. Many years of practical expertise and our expertise in legal and commercial matters let our work as restructurers stand out from the rest.
What should a solid restructuring plan cover?
- Information on the general qualification of an enterprise for restructuring
- Concrete restructuring measures
- A plausible, medium-term business plan
The restructuring concept determines a clear forward direction
Such a plan is more than just a formality – it is rather the “script” for the future of an enterprise. Therefore, every diligently developed restructuring plan should pursue at least three objectives: It must outline a positive going concern forecast, restore or improve the company’s competitiveness and clarify the question of the company’s financing for the longer term. To reach these objectives, the company is turned inside out in a certain sense and it must be demonstrated where there is an urgent need for change and the corresponding possible solutions for this have to be described.
The following should be questioned critically in the restructuring plan:
- The business model
- The products and services
- The structure of the company
- All operating processes
- Relations with customers, partners and service providers
- Asset and financial structure
Do you have questions about the restructuring plan?
- Advice on self-administration and protective shielding
Insolvency law enables restructuring in own responsibility even today during the acute crisis. To be able to focus on daily operations, entrepreneurs often need specialist support, however. In addition, debtor-in-possession proceedings or a procedure under the protective shield is often only admitted by courts and creditors if the company has an experienced adviser at its side.
As interim mangers or restructuring managers, we advise the top management of the company. In doing so, we bundle our legal expertise and business management know-how. If needed, we will also become active ourselves, because a promising insolvency plan by itself does not make for a sustainable restructuring. Stringent implementation is needed to restructure workflows and processes: Difficult measures must be started with specificity; it must be communicated with the employees; consideration must be paid to the specific particularities of the company and the specifics of the industry.
- Alternative remediation scenarios
What happens if the desired restructuring approach does not show effects and if the going concern of a company is at risk? Then it is important for the decision-makers to know their alternatives. We develop different insolvency scenarios and classify them accordingly. What are the chances of success? What are the pros and cons of the respective solution? Which effects does a scenario have on creditors, entrepreneurs, customers or employees? Based on our answers to these questions, the company management will stay in control and be able to react, even in unexpected situations.
Possible alternative scenarios:
- Reconstruction according to the procedure with insolvency plan
- Sale of the company out of the crisis (distressed M&A)
- Restructuring by asset transfer – sale of the company’s assets
- Liquidation: Discontinuation of business, satisfaction of existing liabilities, distribution of the remaining financial assets to the shareholders
Are you looking for partners experienced in the rehabilitation and restructuring of companies? Your contact is looking forward to hearing from you.