We support companies and their stakeholders (banks, investors, credit insurers, the general public) during different stages of the crisis. Beside the preparation of Independent Business Reviews and of company forecasts we develop financial and operative restructuring concepts and gladly take up the implementation of these concepts at the company’s premises. Additionally, we offer consulting in turnaround situations as well as special consulting for stakeholders in crisis situations.

Independent Business Review (IBR)

Through our Independent Business Review (IBR) we deliver a fast, professional and independent overview of the financial situation and a critical analysis of your financial and asset position as well as your profitability. This expert opinion forms the basis of your discussions with potential financing sources.

Starting point

Economic turmoil and consequent financial crisis cause situations that require additional contributions from stakeholders. These scenarios create uncertaintly and undermine confidence. In such situations an IBR provides the maximum possible transparency and comprehensive information for the decision maker.

Target audience
  • Owners/Supervisory Board
  • Executive Board/Management
  • Debt/Equity providers
  • Investors and Acquirors
Content
  • Holistic representation of the financial situation and critical assessment of the financial, asset and profitability position of the company or group
  • Comprehensive representation and critical analysis of the business performance
  • Consideration of strategic, legal, organisational, technical, environment-related, tax and other aspects that have a fundamental impact on the company’s future development
  • Analysis and critical review of the company’s strategy in accordance with the market and competition
  • Well-founded assessment of the Business Plan
  • Opportunities and risk profile, SWOT Analysis
  • Preparation and appraisal of independent planning scenarios (sensitivity analysis)
Output

Documents with meaningful information for the purpose of negotiations with potential investors.

Approach

1. Starting point and economic environment
  • Legal and organisational framework
  • Financial position
  • Products and services
  • Calculation and profitability
  • Market and competition
  • SWOT-Analysis
2. Assessment of the situation and the corporate strategy
  • Causes of possible negative developments
  • Vision and strategic programme
  • Measures of the management
3. Planned accounts
  • Plan structure
  • Assumptions
  • Profitability plan
  • Liquidity plan
  • General statements about robustness and sensitivity
4. Improvement measures
  • Strategic measures
  • Operative measures

Preparation of Forecasts

The pre-requisite for the implementation of the necessary restructuring steps is the existence of a positive business plan.

Starting point

In order to avoid the threat of insolvency, legislators require postivite projections for the company’s going concern that have to be prepared by an independent expert. Not only shall this document the current situation, but it also serves as the the basis ffor future negotiations with financiers and other stakeholders during the restructuring process.

Target audience
  • Owners/Supervisory
  • Board Executive Board/ Management
  • Debt/Equity providers
Content
  • Analysis of the company’s situation and the financial, asset and profitability position
  • Overall economic framework and industry analysis
  • Ascertainment of the fundamental causes and characteristics of the crisis (e.g. liquidity analysis, obstacles for the company’s success …)
  • Preparation of primary and secondary forecasts (financial plan with explanations)
  • Development of the restructuring concept and the resulting budgetary accounts
Output

Binding Opinion on the current economic situation and assessment of the future development of the company as the basis for conducting negotiations und meetings (in case of positive projections—Recovery Controlling).

Approach

1. Analysis of the corporate environment and the company status
  • Detailed analysis of the current company status
  • Analysis of the profitability, financial and assets position of the company and of the problematic issues identified
  • Development of an assessment of the economic environment and of the sector development on the basis of our market and industry experience
  • Analysis of the causes of the crisis (liquidity crisis, success crisis, strategic crisis)
2. Primary Prognosis
  • Presentation of a monthly budget on the basis of defined value-drivers and defined prices and quantities for a minimum period of 12 months.
  • Preparation of a meaningful financial plan including all relevant explanations for a minimum period of 12 months.
  • Evidence of the ability to maintain solvency
3. Secondary Prognosis
  • Preparation of an integrated business plan on the basis of anticipated business development and definded measures
  • Generation of a P&L, balance sheet and cashlfow plan for a minimum of 5 years
  • Evidence of a long-term positive development
4. Evaluation of the results
  • Calculation of ongoing liquidity shortfalls and explanation of the related effects on the company’s forecast
  • Statement on the company’s continuity on the basis of the current business development
  • Statement on the company’s continuity focusing on the operative and financial measures

Turnaround Services

We provide support for companies, shareholders and banks, as well as other creditors during the assessment and handling of the corporate crisis.

We provide support for companies, shareholders and banks, as well as other creditors during the assessment and handling of the corporate crisis. Our Turnaround Services are based on our comprehensive consultung experience in all stages of the crisis and range from the assessment to the development of restructuring concepts up to the implementation of restructuring measures through Interim and Turnaround Management.

Starting Point & Target Audience

Crisis situations have diverse, complex consequences, which put the company’s existence at risk. In agreement with the management, measures for overcoming liquidity problems, for stabilising the day-to-day business and for the strategic re-positioning of the company as well as the refinancing are defined. During the implementation of the restructuring measures we also take responsibility of the process if required e.g. in the position of the CRO—Chief Restructuring Officers.

Content
  • Development of the Business Plan and Restructuring Concept
  • Liquidity plan and management
  • Internal guidelines and allocation of resources
  • Focus on the core business
  • Development and monitoring of costs reduction programmes
  • Risk, Crisis and Interim Management
  • Support of the company’s management during the restructuring process
Result

Improvement of the operative performance, fast implementation of profitability improvements, securing of liquidity, successful strategic market positioning.

Business Securing & Trusteeships

Support for the sale of companies or business units as well as for the identification of crisis-prone business units and finding of an individual, optimal solution for the withdrawal from some business activities in order to minimise economic and legal risks and as a result also closure costs, taking regulatory requirements and the compliance with covenants und credit terms into consideration.

Support for the sale of companies or business units as well as for the identification of crisis-prone business units and finding of an individual, optimal solution for the withdrawal from some business activities in order to minimise economic and legal risks and as a result also closure costs, taking regulatory requirements and the compliance with covenants und credit terms into consideration.

Starting Point & Target Audience

Stakeholders want to obtain a change in the ownership. In the portfolio of the companies’ activities, because of the altered market situation, falling margins or low capital base, an adjustment might become necessary In this regard the decision to sell subsidiaries or parts of the company might be reached, which can include the closure of offices, regional or industry segments. We advise the management and/or the stakeholders in the decision process between a restructuring process, the sale or the liquidation of some operations.

Content
  • Double-sided trusteeship (with/without accompanying transaction)
  • Identification and classification of the business activities
  • Quantification of the financing potential and requirements
  • Estimation of possible courses of action
  • Determination of the business units or operations to be closed down or divested
  • Identification of the required resources
  • Detailed plan and implementation
Result

New ownership structure with secured going concern. Improvement of the shareholder value and earlier freeing up of resources.

Operational & Financial Restructuring

The next step after the submission of positive forecasts is the operational & financial restructuring.

The next step after the submission of positive forecasts is the operational & financial restructuring. It includes the support of the management in acute crisis situations, the backing of the management and the shareholders during the implementation of defined measures, the securing of the operative restructuring success through ongoing controlling of deviations from the desired output and the implementation of defined counter measures and if required a temporary take-over of the individual tasks.

Starting Point & Target Audience

In crisis situations the management, the capital provider and other stakeholders need weel-founded and reliable information about the strategic, operative and financial position of the company. Within the operative and strategic restructuring framework the improvement of profitability, the securing of the short-term and long-term viability and the restoration of the sustainable competitiveness of the company shall be achieved. Within the financial restructuring we develop and implement measures for freeing up the required cash and for strengthening the liquidity position of the company. Moreover, we offer support for talks with existing and potential capital providers, suppliers, employees and the general public.

Content
  • Analysis of the starting point and analysis of the crisis’s causes and the plausibility of the Business Plan
  • Choice of restructuring options (extra-judicial settlement, restructuring and bankruptcy proceedings)
  • Integrated financial plan and definition of a list of operative measures
  • Cash management/Measures for the optimisation of working capital managements
  • Monitoring of measures’ implementation (u.a. Definition of concrete individual steps on a working level with responsibilities and time requirements)
  • Detection of realisation of short-term liquidity reserves/rapid cost reduction
  • Assessment of productivity potential of the company
  • Communication and negotiations with creditors/investors and other stakeholders/interest groups (bank agreements, refinacing and search for capital)
  • Preparation as well as appraisal of the restructuring process and expert opinion
  • Preparation of insolvency proceedings and accompanying execution
  • Support of managemnet during the restructuring process
Result

Stabilisation of the overall operative and financial situation of the company and monitoring of the implementation of the turnaround.

Approach

1. Analysis of the current status and crisis situation
  • Analysis of the causes of the crisis and losses from an operative perspective
  • Profitability analysis of the business model
  • Analysis of the current financial situation and shortfalls
  • Analysis of the management and the organisation
  • Analysis of the company environment
2. Determination of the status and review of existing programmes
  • Identification of cost- and value-drivers
  • Strengths/Weaknesses and Opportunities/Threats analysis
  • Insolvency testing
  • Review and commentary of existing restructuring measures and recommendations
3. Development, implemenation and control of the determined restructuring measures
  • Determination of the restructuring strategy
  • Development of coordinated operative measures along the total value chain
  • Development of asset-oriented measures
  • Equity-oriented measures
  • Debt-oriented measures
  • Selection of measures and assessment of the effects on liquidity and the changes in equity.
  • Development of timely coordinated restructuring measures and involvement of management and employees.
  • Determination of potential issues and success factors for the timely implementation of the restructuring process
  • Controling of the measures (e.g.: definition of the single steps on each level with responsibilities and time criteria)
4. Ongoing coordinative measures
  • Support of the management during the restructuring process
  • Communication and negotiations with creditors/investors and other stakeholders/interest groups (Bank negotiations, refinancing and search for capital)
  • Sparring Partner for problems
  • Controlling of ongoing change management processes

Possible implementation structure for the restructuring process

HR Restructuring

In agreement with the management we develop and define measures for the personnel reorganisation and downsizing on the basis of the proven expertise of our restructuring teams during the restructuring process reorientation of the company.

In agreement with the management we develop and define measures for the personnel reorganisation and downsizing on the basis of the proven expertise of our restructuring teams during the restructuring process reorientation of the company. If desired we also conduct the implementation of the defined list of measures.

In this respect we draw on the years of experience and know-how of our partner company BORA Gesellschaft für Beratung, Organisation und Ausbildung, particularly for employment law issues.

Starting Point & Target Audience

In the course of the necessary restructuring measures, the adaptation of personnel costs in the form of capacity reduction or the adaptation of qualifications are mainly a superficial issue, in which a large number of financial, operative and human resources risks have to be taken into account.

Content
  • Personnel plan and estimation of liquidity effects of the personnel downsizing measures
  • Support during the personnel downsizing and redundancy scheme negotiations
  • Support and if required training of executives and HR employees in conducting severance talks
  • Mentoring of the concerned employees in the status assessment, stregths/weaknesses analysis and reorientation
  • Initiation of the suitable communication measures in the personnel measures’ framework
  • Support in the reorganisation of the new corporate culture
  • If required und needed executive search and personnel search/consulting
Result

Reduction of the reputation and motivation risks and as a result ensuring of the company’s success as well as the restructuring/ turnaround.