Restructuring & Turnaround
Independent Business Review (IBR)
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Initial Situation
Economically turbulent times and the resulting possible crisis situations create circumstances that require additional financial contributions or capital injections from stakeholders. These scenarios create uncertainty and skepticism.
In this situation, an IBR enables the greatest possible transparency and provides meaningful information for decision-making.
Address Data
- Owners / Supervisory Bodies
- Executive Board / Management
- Debt / Equity Providers
- Investors and Buyers
Content
- Holistic presentation of the financial situation and critical assessment of the assets, financial position, and earnings of the company or corporate group
- Comprehensive presentation of the operational situation and its critical assessment
- Consideration of strategic, legal, organizational, (production) technical, environmental, tax, and other aspects with a significant influence on the company’s progress
- Analysis and critical assessment of the corporate strategy in alignment with the market(s) and competition
- Sound assessment of corporate planning
- Opportunity/risk profiles, SWOT analyses
- Preparation and evaluation of independent planning scenarios (sensitivity analyses)
Result
Meaningful documentation for negotiations with potential investors.
Procedure
1. Initial situation and framework conditions
- Legal and organizational framework
- Financial circumstances
- Products and services
- Costing and profitability
- Market and competition
- SWOT analysis
2. Assessment of the situation and corporate strategy
- Causes of possible negative developments
- Vision and strategic program
- Management measures
3. Financial planning
- Planning structure
- Assumptions and premises
- Earnings planning
- Liquidity planning
- Broad statements on robustness and sensitivity
4. Improvement measures
- Strategic measures
- Operational measures
Review & Preparation of Going Concern Forecasts
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Initial Situation
To avoid imminent insolvency, the law requires a positive going concern forecast prepared by an independent expert. This not only documents the current situation but primarily serves as a basis for further negotiations with capital providers and other stakeholders in restructuring processes.
Addressees
- Owners / Supervisory Bodies
- Executive Board / Management
- Debt / Equity Providers
Content
- Analysis of the company status and situation assessment (earnings, financial, and asset position)
- Macroeconomic framework and industry analysis
- Identification of the main causes and types of crisis (e.g., liquidity crisis, profitability crisis, etc.)
- Presentation of primary and secondary forecasts (financial plan with explanations)
- Development of a restructuring concept with the resulting financial planning
Result
Binding statement on the current economic situation and assessment of future corporate development as a basis for conducting further negotiations and discussions (in the case of a positive going concern forecast – restructuring controlling).
Procedure
1. Analysis of the corporate environment and company status
- Detailed analysis of the current company situation
- Explanation of the company’s earnings, financial, and asset position as well as identified problem areas
- Development of an assessment of the macroeconomic framework and industry development based on our market and industry experience
- Analysis of the causes of the crisis (liquidity crisis, profitability crisis, strategic crisis)
2. Primary forecast
- Presentation of a monthly performance budget based on defined value drivers and defined price/quantity structures for a period of at least 12 months
- Preparation of a meaningful financial plan including all relevant explanations for a period of at least 12 months
- Proof of maintenance of solvency
3. Secondary forecast
- Preparation of integrated business planning based on the emerging business development and defined measures
- Preparation of a P&L, balance sheet, and cash flow plan for a period of at least 5 years
- Proof of long-term positive development
4. Assessment of results
- Determination of ongoing liquidity gaps and explanation of the related effects on the company’s continued existence
- Statement on the continued existence of the company based on current business development
- Statement on the continued existence of the company subject to the targeted implementation of operational and financial measures
Turnaround Services
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Initial Situation & Addressees
Crisis situations cause diverse, complex, and existential consequences for companies. In close coordination with management, measures are developed to overcome liquidity problems, stabilize operational business, and for strategic realignment.
Content
- Development of business plans and restructuring concepts
- Liquidity planning and management
- Internal guidelines for the use of funds
- Concentration on core business
- Development and monitoring of cost reduction programs
- Risk, crisis, and interim management
- Support for management in restructuring processes
Conclusion
Improvement of operational performance, rapid implementation of earnings improvements, securing liquidity, successful strategic market positioning.
Business Securing & Trusteeships
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Initial Situation & Addressees
Economically turbulent times and the resulting possible crisis situations create circumstances that require additional financial contributions or capital injections from stakeholders. These scenarios create uncertainty and skepticism. In this situation, an IBR enables the greatest possible transparency and provides meaningful information for decision-making.
Content
- Double-sided trusteeship (with/without accompanying transaction)
- Identification and classification of business activities
- Quantification of financial resource potential/requirements
- Assessment of possible alternatives for action
- Determination of company units or activities to be closed or divested
- Identification of required resources
- Detailed planning and
- Implementation
Conclusion
New ownership structures with a secured going concern. Improvement of shareholder value and earlier release of resources.
Procedure
1. Determination of the future target status
- Development of the conceptual structure for how the stabilization of the business and the assumption of a fiduciary function should take place
- Establishment of a schedule within which the trust solution should be completed and agreement on the term
- Determination and coordination of the goals to be fulfilled and definition of the dissolution criteria
2. Structuring the situation and defining the roles of the parties
- Definition of the role of the trustors and determination of the provisions for a re-transfer of the shares
- Detailed definition of the tasks and information obligations of the trustee within the framework of the present agreement
- Determination of the fiduciary obligations of the trustee, especially with regard to the transfer of business shares and tasks in operational management
3. Assumption of fiduciary functions
- Preparation of the trust agreement with relevant legal support
- Coordination of the trust agreement and alignment with all involved partners (primarily rights and obligations of the trustors and the trustees)
- If banks are involved as main creditors, it is recommended to include them in the trust agreement during the transfer of shares and to define the relevant cooperation and information obligations
4. Operational management
- Operational management and, if necessary, assumption of management by an expert (CRO)
- Implementation of tasks, especially with regard to the sale of shares
- The CRO and trustee on the part of TJP are independent persons to avoid possible conflicts of interest (they are in constant communication)
- Ongoing relationship management between all involved partners / compliance with defined change management guidelines
5. Coordination of information exchange
- Ongoing reporting according to defined criteria to trustors and beneficiaries
- Ad-hoc reporting in case of extraordinary events
- Conducting regular meetings to increase motivation and acceptance
Operational & Financial Restructuring
The next step after a positive going concern forecast is operational & financial restructuring.
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Initial Situation & Addressees
In crisis situations, management, capital providers, and other stakeholders require sound and reliable information about the strategic, operational, and financial state of the company. Within the framework of operational and strategic restructuring, the goal is to improve the earnings situation, secure short-term and long-term viability, and (re)establish the sustainable competitiveness of the company. As part of financial restructuring, we develop and implement measures to release liquid funds and strengthen the company’s liquidity position. Furthermore, we provide support in discussions with existing and potential capital providers, suppliers, employees, and the public.
Content
- Analysis of the initial situation and the causes of the crisis, and plausibility check of the corporate planning
- Selection of restructuring options (out-of-court settlement, restructuring/insolvency proceedings)
- Integrated financial planning and definition of an operational catalog of measures
- Cash management / measures to optimize working capital management
- Measures controlling (including definition of specific individual steps at the working level with responsibilities and timelines)
- Identification and realization of short-term liquidity reserves / Rapid Cost Reduction
- Review of sales productivity potential
- Communication and negotiation with creditors/investors and other stakeholders/interest groups (bank agreements, refinancing, and capital search)
- Preparation or review of restructuring concepts and expert reports
- Preparation for insolvency proceedings and accompanying processing
- Support for management during the restructuring process
Conclusion
Stabilization of the overall operational and financial situation of a company and ensuring the implementation of the turnaround.
Procedure
1. Analysis of the previous status and the crisis situation
- Analysis of the causes of the crisis and losses from an operational perspective
- Profitability and performance analyses of the business model
- Analysis of the current financial status and shortfalls
- Analysis of corporate management and organization
- Analysis of the corporate environment
2. Status determination and review of existing programs
- Identification of value and cost drivers
- Strengths/weaknesses and opportunities/risks analysis (SWOT)
- Over-indebtedness check
- Review and commentary on existing restructuring measures and recommendations
3. Development, implementation, and control of the defined restructuring measures
- Determination of the restructuring strategy
- Development of coordinated operational measure programs along the entire value chain
- Identification of asset-oriented measures
- Equity-oriented measures
- Debt-oriented measures
- Selection of measures and assessment of effects on liquidity and equity development
- Development of timed restructuring measures and involvement of management and employees
- Define pitfalls and success factors for the timely implementation of the restructuring
- Measures controlling (including definition of specific individual steps at the working level with responsibilities and timelines)
4. Ongoing coordinative measures
- Support for management during the restructuring process
- Communication and negotiation with creditors/investors and other stakeholders/interest groups (bank agreements, refinancing, and capital search)
- Sparring partner for problems
- Management of an ongoing change management process
Possible implementation structure for restructurings
HR Restructuring
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Initial Situation & Addressees
In the course of necessary restructuring measures, the adjustment of personnel costs in the form of capacity reduction or the adjustment of qualifications is usually a primary issue, in which a variety of financial, operational, and (personnel) economic risks must be considered.
Content
- Personnel planning and assessment of the liquidity impact of personnel restructuring measures
- Support during personnel reduction and social plan negotiations
- Support and, if necessary, training for managers and HR staff in conducting termination meetings
- Support for affected employees in personal assessment, strengths/weaknesses analysis, and reorientation
- Initiation of suitable communication measures within the framework of personnel measures
- Support during the cultural realignment of the company
- Executive search and recruitment/consulting as needed and required
Conclusion
Reduction of reputational and motivational risks, thereby ensuring the success of the company or the restructuring/turnaround
Further
Services
Corporate Finance
Tax Advisory
We offer specialized tax advisory for M&A, real estate, and asset transactions, as well as restructurings. Benefit from comprehensive tax planning for companies and private individuals – all from a single source.
Human Resources
Our HR management supports you in achieving your corporate objectives efficiently and strategically. We ensure that the HR department, as a service function, delivers clear results for both management and employees.
Management Consulting
A clear strategy provides orientation and secures your economic success. We support you in product development, site selection, and market entry – and accompany you through organizational changes.
Auditing
In addition to auditing annual financial statements, we offer our expertise in special audits, reorganizations, and restructuring matters. With our support, you can resolve legal and economic challenges efficiently.
Forensic & Compliance
Our Forensic & Compliance services support you in investigating digital white-collar crime. With experienced forensic specialists, we secure and analyse digital evidence and provide preventive advice.
Start-ups & Business Development
From the idea to a successful product: We support you at every step of setting up your business. Whether you are still unsure or looking for professional guidance, we turn your vision into reality.
