Restructuring & Turnaround

Restructuring & Turnaround Services

We support companies and their stakeholders (banks, investors, credit insurers, the public sector) at various stages of the crisis.

In addition to preparing independent business reviews and going concern forecasts, we develop financial and operational restructuring concepts and are happy to implement them on site at the company. Furthermore, we also offer special services in turnaround situations and for stakeholders in crisis situations.

Independent Business Review (IBR)

The Independent Business Review (IBR) provides you with a quick, professional and independent presentation of your financial situation and a critical assessment of your asset, financial and earnings position. This report is an essential basis for discussions with potential investors.

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Initial situation	Economically turbulent times and the resulting possible crisis situations provide circumstances that require additional financial contributions/ top-ups from stakeholders. These scenarios create uncertainty and scepticism. In this situation, an IBR enables the greatest possible transparency and provides meaningful information for decision-making.
Addressees	Owners/ supervisory bodies Board of Directors/Management Debt/equity investors Investors and buyers
Content	Comprehensive presentation of the financial situation and critical assessment of the asset, financial and earnings position of the company or group of companies Comprehensive presentation of the performance situation and its critical assessment Consideration of strategic, legal, organisational, (production) technical, environmental, tax and other aspects of significant influence on the company's progress Analysis and critical assessment of the corporate strategy in coordination with the market(s) and the competition Sound assessment of corporate planning Opportunity/risk profiles, SWOT analyses Preparation and assessment of independent planning scenarios (sensitivity analyses)
Result	Meaningful documents for negotiations with potential investors

Procedure

1. initial situation and framework conditions	Legal and organisational framework Financial ratios Products and services Calculation and profitability Market and competition SWOT analysis
2. situation assessment and corporate strategy	Causes of possible negative developments Vision and strategic programme Management measures
3. planning calculation	Planning structure Assumptions and premises Revenue planning Liquidity planning Rough statements on robustness and sensitivity
4. improvement measures	Strategic measures Operational measures

Examination & preparation of continuation prognosis

The prerequisite for initiating any remediation steps is the existence of a positive going concern prognosis.

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Initial situation	In order to avoid the threat of insolvency, the legislator requires a positive going concern forecast prepared by an independent expert. This not only documents the current situation, but also serves as a basis for further negotiations with investors and other stakeholders in restructuring processes.
Addressees	Owners/supervisors Board of Directors/Management Debt/equity providers
Content	Analysis of the company status and assessment of the situation (earnings, financial and asset situation) Macroeconomic framework and sector analysis Survey of the main causes and types of crises (e.g. liquidity crisis, success crisis,...) Presentation of the primary and secondary forecast (financial plan with explanations) Development of a reorganisation concept with resulting planning calculation
Result	Binding statement on the current economic situation and assessment of the future development of the company as a basis for conducting further negotiations and talks (in the case of a positive going concern forecast - restructuring controlling).

Procedure

1. analysis of the business environment and the status of the company	Detailed analysis of the current company situation Explanation of the earnings, financial and asset situation of the company as well as the identified problem areas Development of an assessment of the overall economic framework situation and the sector development based on our market and sector experience Analysis of the causes of the crisis (liquidity crisis, success crisis, strategic crisis)
2. primary forecast	Presentation of a monthly performance budget based on defined value drivers and defined price/quantity frameworks for at least a 12-month period. Preparation of a meaningful financial plan including all relevant explanations for at least a 12-month period. Evidence of the maintenance of solvency
3. secondary forecast	Preparation of an intergated business plan 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 Evidence of long-term positive development
4. assessment of the results	Determination of the current liquidity gaps and presentation of the related effects on the company's continued existence Statement on the continued existence of the company on the basis of the current business development Statement on the continued existence of the company in accordance with targeted operational and financial measures

Turnaround Services

We support companies, shareholders as well as banks and other creditors in the assessment and management of corporate crises.

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Our turnaround services are based on our extensive consulting experience in all crisis stages and range from restructuring concepts to the implementation of restructuring measures through interim/turnaround management.

Initial situation & addressees	Crisis situations cause a variety of complex and existentially threatening consequences for companies. In close coordination with the management, measures are taken to overcome liquidity problems, stabilise the operative business, strategically
Content	Development of business plans and restructuring concepts Liquidity planning and management Internal guidelines for the use of funds Concentration on the core business Development and monitoring of cost reduction programmes Risk, crisis and interim management Supporting the management in restructuring processes
Conclusion	Improvement of operational performance, rapid implementation of earnings improvements, securing liquidity, successful strategic market positioning.

Business Securing & Trusteeships

We support companies, shareholders as well as banks and other creditors in the assessment and management of corporate crises.

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Support in the sale of companies or shares as well as in the identification of parts of the company at risk of crisis and finding an individual, optimal solution for the exit from business activities in order to minimise economic and legal risks and optimise closure costs while observing regulatory requirements and complying with covenants and credit terms.

Initial situation & addressees	Economically turbulent times and the resulting possible crisis situations provide circumstances that require additional financial contributions/ top-ups from stakeholders. These scenarios create uncertainty and scepticism. 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 the financial resources potential/need Assessment of possible alternative courses of action Determination of the closure or divestment enterprise parts or activities. Identification of the required resources Detailed planning and Implementation
Conclusion	New ownership structures with secured going concern. Improved shareholder value and earlier release of resources.

Procedure

1. determination of the future target status	Development of the conceptual structure for stabilising the business and assuming a fiduciary function Determination of a timetable within which the trusteeship solution is to be completed and agreement of the duration Determination and agreement of the objectives to be met and definition of the resolution criteria
2. structuring the situation and defining the roles of the parties	Definition of the role of the settlors and determination of the provisions for a re-transfer of the shares Detailed definition of the trustee's tasks and duties to provide information within the scope of the present agreement Determination of the trustee's fiduciary obligations, especially with regard to the transfer of the business shares and tasks in operational control
3. assumption of trustee functions	Drafting of the trust agreement with relevant legal support Coordination of the trust agreement and agreement with all partners involved (primarily rights and obligations of the settlor and the trustee) If banks are involved as main creditors, it is advisable in the course of transferring the shares to include this in the trust agreement and to stipulate the relevant duties of cooperation and information.
Operational control	Operational control and, if necessary, takeover of the management by an expert (CRO) Implementation of the tasks especially with regard to the sale of shares CRO and trustee on the part of TJP are independent persons to avoid possible conflicts of interest (are in constant exchange). Ongoing relationship management and between all partners involved/compliance with defined change management guidelines
5. coordination of information exchange	Ongoing reporting to trustors and beneficiaries according to defined criteria Ad-hoc reporting in the event of extraordinary occurrences Conduct 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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It includes supporting management in acute crisis situations, assisting management and shareholders in implementing defined measures, ensuring operational restructuring success through ongoing deviation controlling and the implementation of defined countermeasures and, if necessary, taking over individual areas of responsibility for a limited period of time.

Initial situation & addressees	In crisis situations, management, investors and other stakeholders need sound and reliable information on the strategic, operational and financial state of the company. In the context of operational and strategic restructuring, the aim is to improve the earnings situation, ensure short-term and long-term viability and (re-)establish the sustainable competitiveness of the company. In the context of financial restructuring, we develop and implement measures to free up 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 corporate planning Selection of reorganisation options (out-of-court settlement, reorganisation/bankruptcy proceedings) Integrated financial planning and definition of an operational catalogue of measures Cash management/ Measures to optimise working capital management Controlling of measures (e.g. definition of concrete individual steps at working level with responsibilities and timelines) Uncovering and realising short-term liquidity reserves/ Rapid Cost Reduction Examination of productivity potentials in sales Communication and negotiation with creditors/ investors and other stakeholders/ interest groups (bank agreements, refinancing and capital search) Preparation or review of reorganisation concepts and expert opinions Preparation for insolvency proceedings and accompanying liquidation Supporting the management during the restructuring process
Conclusion	Stabilising the overall operational and financial situation of a company and ensuring the implementation of the turnaround.

Procedure

1. analysis of the status to date and the crisis situation	Analysis of the causes of the crisis and losses from an operational perspective Success and profitability analyses of the business model Analysis of the current financial status and shortfalls Analysis of corporate governance and organisation Analysis of the business environment
2. status determination and review of existing programmes	Identification of value and cost drivers Strengths/weaknesses and opportunities/risks analysis Over-indebtedness audit Review and comment on existing restructuring measures and recommendations
3. elaboration, implementation and control of the defined remediation measures	Determination of the remediation strategy Development of coordinated operational programmes of measures along the entire value chain Survey of asset-based measures Equity-oriented measures Debt-oriented measures Selection of measures and assessment of effects on liquidity and equity development Development of time-coordinated reorganisation measures and involvement of management and employees Determine pitfalls and success factors for the timely implementation of rehabilitation Controlling of measures (e.g. definition of concrete individual steps at working level with responsibilities and timelines)
4. ongoing coordinative measures	Supporting the 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 Steering of an ongoing change management process

Possible implementation structure for restructurings

HR Restructuring

In consultation with the management, we develop and define measures for staff restructuring and reduction during the restructuring and realignment of the company based on the proven expertise of our restructuring team.

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If desired, we also accompany the implementation of the defined catalogue of measures. In doing so, we draw on the long-standing expertise of our HR team, especially in labour law issues.

Initial situation & addressees	In the course of necessary restructuring measures, the adjustment of personnel costs in the form of capacity reductions or the adjustment of qualifications is usually also a frontline issue, in which a large number of financial, operational and (personnel) economic risks have to be taken into account.
Content	Personnel planning and assessment of the liquidity effect of personnel restructuring measures Support during staff reductions and social plan negotiations Support and, if necessary, training of managers and HR staff in the conduct of separation interviews. Support for the employees concerned in determining their personal position, analysing strengths and weaknesses and in reorientation Initiation of appropriate communication measures within the framework of the personnel measures Accompanying the corporate cultural realignment Executive search and personnel search/consulting as needed and required
Conclusion	Reduction of reputational and motivational risks and thus securing the company's success or restructuring/turnaround

Restructuring & Turnaround