If your company enters a crisis situation, you require experience in addressing acute and time-critical challenges. Creditors such as banks as well as management and the shareholders all require assistance in overcoming the crisis. We are situation consultants who possess the necessary experience to address your particular situation.
With instruments such as quick checks, going-concern forecasts and comprehensive restructuring plans in accordance with IDW S 6 combined with the right consulting approach appropriate for the scope of the crisis situation, we create the transparency required to identify the steps that must be taken to overcome the crisis. Experience shows that implementing these steps poses an additional challenge that often requires intensive support. Here, too, we can provide you with the experts you require.
Crisis situations frequently call for action to be taken at very short notice. This often takes the parties involved by surprise. All parties required a robust information base with minimum delay so that decisions can be taken swiftly.
In a quick check, we perform a review of the company’s current situation within a very short space of time. The purpose is to allow management and other stakeholders to lay the necessary foundations at short notice. Depending on the circumstances, we pursue different approaches in consultation with the stakeholders: We review existing budgets and assess their plausibility. We express our opinion on restructuring measures that have already been taken. We provide a preliminary indication of the type and scope of the financial and operating restructuring measures required to ensure the company’s long-term survival in the light of the prevailing circumstances.
If in a crisis situation management and the stakeholders require a solid basis for planning for the near future but a serious crisis has not yet occurred, we can provide robust information in a going-concern forecast. The key question to be answered is whether the company’s going-concern status can be maintained until the end of the next financial year. In this way, it is possible to exclude at an early stage insolvency risks by means of a solvency forecast and a net asset preview.
To this end, we analyze business performance, explore the reasons for the crisis, define operating measures and prepare an integrated corporate plan for the current and following financial year. This provides the stakeholders with a confidence-inspiring opinion on the company’s successful performance despite the prevailing crisis situation.
Economically turbulent times and crisis situations regularly trigger uncertainty on the part of management and cause doubts among finance partners and other stakeholders. An independent business review (IBR) provides the parties involved with the necessary transparency as well as a basis for making realistic financial, restructuring or investment decisions.
The focus of our consulting activities within the scope of an independent business review varies according to the specific situation in which the company finds itself as well as the information required by the stakeholders. Possible areas of interest include:
IDW has published Standard 6 “Requirements with respect to restructuring plans”. The requirements which the standard defines take account of the relevant rulings of the German Federal Court of Justice, thus ensuring that restructuring plans that are prepared in accordance with IDW S 6 provide a legally sound basis for finance partners for granting loans or renewing existing ones. In addition, it helps to reduce management’s personal liability by documenting the duties that must be discharged in a crisis situation.
Restructuring plans prepared in accordance with IDW S 6 include a neutral assessment of the potential for restructuring the company in a crisis situation. The existing business model is evaluated and a plan of action prepared for the restructured company. This includes a binding catalog of measures as well as a budget. The ensuing observance of the agreed milestones enhances the success of the restructuring activities culminating in a successful turnaround.
After the analyses have been performed and the restructuring road map complete with the measures to be implemented has been prepared, the company must provide extensive resources for implementation of the plans. The knot must be untied so that no valuable time is lost. Frequently enough, there is only a single chance to overcome a crisis. This makes professional implementation management crucial to ensure that this opportunity is not lost.
We communicate the main elements of the plan to your employees and coach them during the implementation phase. We chair regular meetings of the restructuring team, while central supervision of the activities performed provide all parties involved with importance guidance. If the company requires additional resources to implement the planned activities, we are happy to source these from our own network - see the section on “interim management”. If required, we can update the stakeholders in quarterly reports on the restructuring progress in conjunction with management.
Our restructuring clients expect utter and complete confidentiality. Employees, customers and suppliers do not want to find out about the crisis situation from the media. For this reason, we do not disclose any of the names of our restructuring clients.
However, we will be happy to provide you with a breakdown of the projects by sector as well as our general experience in a meeting in person. Just get in touch with us!