Restructuring and turnaround consulting

Corporate crises are often initially gradual and inconspicuous. They lead to a gradual decline in competitiveness, profitability and enterprise value. As the crisis progresses, the pressure to act increases and the scope for action decreases. At the same time, the risk of insolvency increases. Early and comprehensive rethinking and intervention can limit or prevent negative developments in the long term and initiate a sustainable recovery of the company.

Implementation of effective risk management

The (early) identification of risks threatening the company's existence is often a challenge for the management due to the increasingly complex risk assessment. Frequently, no risk control is implemented, which limits the monitoring of implementation progress and the effectiveness of the defined measures. As a result, responses to risks are often intuitive and often too late. (Ad-hoc) reporting to key bodies, such as the Executive Board and Supervisory Board, is often unstructured, inconsistent and not timely.

To minimize the need for restructuring in advance and, if necessary, to increase the likelihood of its success, clear and transparent early warning systems are crucial. These are designed to help companies identify potential risks and deteriorations in business performance so that they can take countermeasures as early as possible and avert imminent insolvency. After all, the earlier an emerging crisis is identified, the greater the likelihood that insolvency can be prevented by initiating effective restructuring measures. In addition, the obligation to examine risks that could endanger the company's existence and thus the early detection of a corporate crisis represents an important part of the due diligence obligations of the company management.

We support you in implementing a professional and effective risk management system. Our goal is always to identify corporate crises at an early stage, to initiate effective measures if necessary and to monitor them in a comprehensible manner.

Implementation of renovation measures

However, if the company is already in an advanced crisis of success or liquidity, fast and effective action is required to avert imminent insolvency. In these crisis stages, stakeholders, especially lenders, creditors and investors, often demand a turnaround: They want the company to be repositioned to restore profitability and secure their loans and investments. This requires a comprehensive restructuring concept designed to create the basis for sustainable refinancing and competitiveness.

To achieve a company's ability to restructure, it is often necessary, in addition to performance-related tasks, to implement measures to eliminate the risk of over-indebtedness or to improve the equity situation. To strengthen the equity base, it is possible for the shareholders to inject new financial resources in the form of a cash capital increase. Other alternatives include subordination, debt waivers or debt-equity swaps.

We support you in the preparation of complex restructuring concepts as well as in the planning and implementation of targeted and effective restructuring measures.

If you are interested and have any questions, please do not hesitate to contact us.