Before and after petitioning for insolvency things are quite frantic. Uncertainty runs high among those responsible and stakeholders. On the one hand, all energies are directed toward stabilising operations to preserve the highest value. On the other hand, but for the same reason, distasteful business decisions must be made, also to safeguard creditor claims. The (provisional) insolvency administrator must act intelligently and quickly. In such precarious situations, we bolster your insolvency administrator conceptionally and operatively throughout the daily insolvency business.
We gladly assume specific insolvency tasks (i.e. ordering process), acting where it serves you best – either integrated within the organisation or as liaison/intermediary between insolvency administrator, company and external stakeholders (customers, suppliers, investors, etc.). As imperturbable specialists in precarious and insolvency plights, we offer a broad spectrum of specific insolvency expertise with profound methodology knowledge and management competence. Additionally, we assist prominent chancelleries in steering and executing insolvency proceedings, assuming operative positions and seeing to assets optimisation:
- Quick Check of your company’s continuation capacity
- Generating and validating the continuation plan
- Assessment to determine insolvency / excessive over-indebtedness according to IDW S11
- Liquidity planning and monitoring during insolvency proceedings
- Controlling and reporting
- Order and release process management
- Drawing up and inspecting insolvency plans
- Designing and reviewing recovery concepts
- Upholding operations during insolvency / interim management
- Assets optimisation via professional distressed M&A procedures
- Staff equity participation and workforce initiatives
A quick check is actually a short analysis, an immediate rendering of your company’s strengths and weaknesses as well as, and in particular, of the key business development risks. A quick check is also an excellent way to sift your company’s major turnaround potential, bringing to light options for courses of action.
Insolvency situations demand that a company’s continuation capacity is established at the onset. Therefore, the Insolvency Statute’s (section 19 German Insolvency Statute (InsO)) continued existence forecast or going concern forecast is the basis for judging a company’s over-indebtedness. A company is judged not over-indebted when circumstances predominantly point to its probable continuation.
As time is of the essence, our quick check concentrates on essential issues which measure your company’s continuation potential:
- Exposing crisis origin and crisis status
- Generating the current financial status and a short-term liquidity preview
- Overview of the current economic relationships between profits, assets and finances
- Marketability and competitiveness
- Defining initial options for measures and courses of action and inspecting their feasibility
- This initial, rapid analysis contributes decisive parameters for determining if and how your company can continue to exist or what is necessary for recovery during (temporary) proceedings.
Drawing from the quick check analysis of continuation ability and of the Insolvency Statute’s continuation or continued existence forecast, we create an integrated business plan (income, liquidity and balance planning) with the added function of a continuation plan. This continuation plan fulfils the following aspects of temporary or ongoing proceedings:
We also lend our professionalism to the insolvency administrator by supporting operative liquidity management. A cardinal rule of insolvency is to know the current liquidity status inside and out and to clearly foresee the possible consequences of actions. We are well-versed in insolvency administrators’ needs, taking on liquidity controlling in close collaboration.
To guarantee smooth proceedings, the insolvency administrator must remain objective, rendering realistic documentation of numbers, dates and facts. We advise in or assume controlling and reporting responsibilities to ensure the flow of information reaches the proper people, both external (i.e. insolvency courts, creditor panels, credit institutes and others involved in proceedings) and internal (i.e. insolvency administrator, management, tax inspectors and auditors). Seamless controlling is indispensable to promptly recognising undesirable developments and launching counteractivities, powerfully reducing the risk of nasty surprises.
Dissolving orders during running proceedings is a very delicate and liability-relevant issue for insolvency administrators. We understand the specific fragility and challenge involved. Therefore, we define and execute a standardised order and release process throughout the entire business, covering all activities from order request to order-to-cash. Our standardised tool can be adapted to the given IT parameters. It is important to train staff members, giving them a better understanding of the particular situation, of the order process and the tool conceived solely for this purpose.
We support the insolvency administration in surmounting all economic hurdles, in generating insolvency plans or reviewing existent plans. Here, we concentrate on the illustrations addressing the company’s financial issues and continuation capacity. The various building blocks of the illustration component reflect on the recovery concept content. (link recovery concept).
Should it serve your best, four of our partners assume interim management responsibilities, including executive positions such as CRO, CEO or CFO. Each and every partner embodies years of experience in crisis management, strengthening and substantiating your recovery concept on a myriad of industry sectors.
Challenging alleged creditor claims serves an equal treatment of creditors while increasing assets. A prerequisite for sifting the facts and circumstances of claims from given data is profound economic knowledge of, among others, accounting processes and analytic methodology. A company cannot afford a lack of capacity and experience in this specific area. We sustain your insolvency administration by investigating claim realities.
Insolvency often entails selling the entire business, individual group companies or partial areas in a share or asset deal. Your insolvency administrator is duty-bound to exploit your bankrupt company’s assets to the creditor’s benefit, thus enhancing total mass. We design and prepare distressed M&A processes, guiding, together with our subsidiary CVM Capital Value Management GmbH, the subsequent transaction. Experienced, expert advisers from both of our businesses consolidate insolvency, crisis and recovery competence with special transaction expertise. The entire M&A process project is navigated by our partners and encompasses all pursuits:
- Drafting appeals for potential investors (teaser, information memorandum, management presentation)
- Identifying and approaching potential investors (strategists and finance investors)
- Organising and accompanying company visits and management presentations
- Managing the data room and navigating Q&A procedures
- Assessing indicative and binding offers
- Supporting the insolvency administrator during investor discussions and sales contract negotiations
We just as competently assist acquiring capital, whether it takes the shape of investor cuts or co-worker equity participation and workforce initiatives. The latter not only strengthens your capital basis, it also keeps your workforce working for their company. We analyse alternative equity participation models and review public funding options for workforce initiatives.