Reorganization consulting – A new future with new strategies
A business crisis can be triggered at any time due to factors that are largely outside the own company management’s area of influence. A business crisis definitely exists, if the financial and success planning shows that the company’s continued existence appears to be at risk if it continues unchanged.
This can happen quickly: sometimes just a deterioration in the payment practice of a few clients or the total loss of one single client is enough to cause a healthy company liquidity difficulties, be they temporary or existential. Reorganization or restructuring strategies can often help avoid filing for insolvency in a crisis. However, small and medium-sized enterprises rarely have the necessary specialist personnel to plan and implement these kinds of measures.
According to Article 270b of the German Insolvency Statute (InsO) only attorneys, tax consultants and auditors are eligible for the so-called protective shield proceedings and authorized to certify a company’s potential for restructuring. As a result of the ethical principle of auditors being independent, they are best suited to objectively assessing the economic situation.
In the first step, we analyze the cause of the crisis together with our clients. Here, it is important to differentiate between the categories of personnel, institutional, profit and fiscal and external influences on the company. Based on this analysis, possible measures can be derived which directly address the weakness and eliminate it. We show you the possibilities for future planning and strategies to satisfy a positive going concern forecast.
Here, we have built up specialist knowledge and expertise to identify risks and opportunities early, to analyze them and find structures to avoid possible liability risks and, following a successful reorganization, reenter the market and gain a stronger market position.
Corporate restructuring – Surviving a crisis with a new start
Not every crisis ends with the company’s liquidation. If the conditions are right, restructuring can be considered. We are familiar with the instruments for a new start and help you to use and implement them effectively.
The first signs of a looming crisis are evident long before a company’s acute liquidity crisis. There are various causes for this:
Sales and turnover have dropped, revenue is too low to cover costs in the long run. The available funds are slowly being used up in full. Shortcomings in accounting, underutilized capacities and overstaffing can lead to financial crises as much as the company’s rapid growth.
Corporate restructuring should be preceded by reorganization consulting where the causes of the crisis are explicitly outlined. Starting points for the restructuring of company processes and even for corporate hierarchies can be based on the results of this analysis.
In a first performance check, we analyze the business and organizational situation as well as the company’s market positioning. This is the basis for the restructuring concept which we prepare together with our clients, and includes, on the one hand, the business planning with an assessment of sales, profit, liquidity and equity development and, on the other hand, an action plan that defines the potential, time frame and responsibilities. In the last step we support you in implementing the defined action points. We advise you on setting up the project organization and project controlling to guarantee these action points are implemented efficiently.
We provide you with a professional project team to assist and support you from analyzing the problem to defining the action plan and implementing the measures agreed upon. This is how we ensure your restructuring is a success.