Reorganization reports & business reviews incl. liquidity analysis
Maintaining an overview in the crisis
Transparency creates the basis for the successful restructuring process
Our experts from Business Recovery Services are specialized in creating transparency in times of a corporate crisis within the short term and, in doing so, lay the foundation for your successful restructuring. Depending on the stage of the crisis, we prepare the following analyses and reports: from a quick check to an independent business review and a formalized/standardized report on the going concern forecast (pursuant to IDW S11) through to a full-scope reorganization report (pursuant to IDW S6).
Our service at a glance
Your concern
A corporate crisis, especially a profit and liquidity crisis, is often associated with an increased need for information or even a loss of confidence among stakeholders (in particular concerning external investors). Therefore, as a first step, external neutral third parties are required in order to ensure transparency and reach consensus on the restructuring path. Frequently, holistic restructuring concepts must be developed. Neutral and objective legal certainty must be created and ensured for all parties in order to safeguard the restructuring process.
In effect, all those involved in the restructuring process need a uniform and neutral view of the “new reality” in order to enable sound decision-making. Basically, this includes an objective assessment of the current business situation, an analysis of the stage of and reasons for the crisis, an evaluation of the current liquidity situation taking into account insolvency law aspects, the business planning as well as an assessment regarding the company's future viability.
Our offer
Depending on the stage of the crisis, five different forms have been established to enable a structured analysis of the contents described above and documentation for the stakeholders:
- Quick Check
- Options Review
- Independent Business Review
- Going concern forecast (pursuant to IDW S11)
- Restructuring reports (pursuant to IDW S6)
- Assessment of reasons for filing for insolvency (pursuant to IDW S11)
Quick Check
Content: Freely definable scope of services, strongly depending on the individual corporate situation and specific factors of the crisis.
Objective: Independent-neutral assessment of selected focal issues that external stakeholders wish to have examined as an objectified basis for decision-making.
Options Review
Content: Freely definable scope of services, strongly depending on the individual corporate situation and specific factors of the crisis.
Objective: Independent-neutral assessment of options on the further course of action concerning the company's development, especially with regard to a) restructuring (with or without insolvency proceedings), b) sale (immediately or after preparation) or c) liquidation (silent or in insolvency proceedings).
Independent Business Review
Content: Freely definable but relatively comprehensive scope of services, strongly depending on the individual corporate situation and the specific factors of the crisis.
Objective: Independent-neutral assessment of the corporate situation in order to have an objectified basis for decision-making.
Going concern forecast (pursuant to IDW S11)
Content: Objective assessment of the company's ability to continue as a going concern, usually in the current and next financial year (if applicable up to maturity of the longest liability); essentially an independent forecast of the company's solvency in the relevant forecast period; relatively highly standardized analysis due to IDW S11 requirements.
Objective: Legal certainty as to whether insolvency filing obligations exist or are imminent.
Restructuring reports (pursuant to IDW S6)
Content: Objective assessment of the company's ability to continue as a going concern (Level 1) and sustainable restructuring capability (Level 2) of the company usually in the next 3 to 5 years (possibly longer, depending on the business model); covers the going concern forecast and expands it to include an assessment of the sustainable restructuring capability of the company; relatively highly standardized analysis due to IDW S6 requirements.
Objective: Transparency, legal certainty and a clear roadmap for restructuring the company.
Assessment of reasons for filing for insolvency (pursuant to IDW S11)
Content: Objective assessment of the existence of reasons for filing for insolvency (illiquidity or overindebtedness); relatively highly standardized analysis due to IDW S11 specifications.
Objective: Legal certainty as to whether insolvency filing obligations exist or are imminent.
Our promise
We are practice-oriented specialists and have an eye for the essentials in special situations. Our communication is addressee-oriented, and we provide you with the answers to the questions that really matter:
- What are the true reasons behind the crisis?
- Are there reasons for insolvency or is insolvency imminent in the near future?
- What about your liquidity situation? Which short-term (liquidity) measures should be initiated to avert impending liquidity shortfalls?
- Can the company's economic balance be restored?
- What are the options? Which business partner must make which contribution and for how long? What are the objectives pursued by the business partners?
- What measures should be taken to regain lasting economic equilibrium and reorganize the company sustainably?
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