Every company has its own individual causes and courses of crisis. Therefore, restructuring management requires individual solutions. The analysis of the company, the causes of the crisis as well as the development and successful implementation of a restructuring concept are structured in phases that logically build on each other. TMC offers support throughout the entire restructuring process – both in "insolvency-related" situations and in the preparation and support of self-administration or regular bankruptcy proceedings.
The analysis not only targets a business recognising the initial signs of a crisis, but also the debt-providers involved. Investors often request a plausibility check or a business model validation/trial balance on which they can base their decision to (possibly) provide capital, to extend credit or to examine the conditions of such.
The analysis identifies essential risks to the company’s development as well as external crisis-invoking factors. The primary objective of the analysis is to promptly gain an overview of the company’s fiscal condition, providing a basis for eliciting initial potentialities and options for action.
Drawing on the analysis results and our conversations, we set up a SWOT structure that rates business aspects according to their Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses reflect the company’s current inhouse condition, while opportunities and threats refer to the essential outer influences.
THE ANALYSIS, AS PARTIAL PERFORMANCE, CAN CULMINATE IN A SHORT ASSESSMENT:
- Review of turnover, earnings and liquidity planning
- Inspection of financial structure and interest payments capacity
- Business model check
- Quick check of recovery potential/options
- IDW S6 recovery assessment
- Independent business review (IBR)
- Continuation concept/ continuation prognoses
- Recovery strategies/ development strategies
- Integrated business planning
- In a crisis, your debt-provider often requests an examination of your recovery capacity and recovery concept in the shape of an independent expert assessment according to the IDW S6 standard. For banks and other financing partners a viable rightsizing concept is a prerequisite for providing or continuing credit lines.
- Based on a comprehensive analysis of your company’s entire value chain, we sit down together and create a realistic concept with courses of action leading to both resilient economic improvement and competitiveness.
- A recovery concept’s content and structure must fulfil with the current BGH (German Federal Supreme Court) requirements. Executing a recovery concept unaligned with these prerequisites can lead to dramatic economic and legal entanglements. Your finance partners can only and will only make credit lines available that are legally sound, based on a clearly defined expert assessment standard.
- We generate recovery concepts based on precisely this IDW S6 standard. By complying with all official requirements, we hold true to our holistic and realistically doable approach.
- The IDW S6 assessment focuses on the following contents:
- Analysing past and current conditions
- Exposing crisis origin and crisis status
- Identifying your company’s strengths and weaknesses
- Determining and evaluating opportunities and threats
- Manifesting potential, predefining a future business model and deriving a corporate image for the recovered business
- Stipulating actions and fiscal measures required for the turnaround
- Reviewing the recovery concept via integrated, multi-annual planning
- We also take in a second opinion by reviewing and consulting comparable recovery assessments.
- Drawing from the business model and business plan plausibility, an IBR is commonly called for in an international milieu, providing debt-providers with an independent, conceptional review of the current performability and fiscal parameters.
- This review is similar in structure and content to standard assessments, but does not, however, have an equal legal footing in Germany. Thus, TMC concentrates on the individual, specific design demanded, jointly defining the IBR content with your business management and the other parties involved.
Typical independent business review contents:
Detailed evaluation of the state of assets, income and finances
Scenario calculations regarding projected financial status
Evaluating your company’s business plan resiliency
Evaluating the market and competitive milieu
- While closing the annual accounts, a company’s executive management is obligated to ascertain that a continuation under normal economic conditions is ensured at least until the following balance sheet date. In a company displaying the first signs of a looming crisis, TMC generates and validates the company’s continuation, based on the annual financial statement. Thus, a differentiation takes place between a going concern forecast according to commercial law and the continued existence forecast according to insolvency law. - CONTINUATION CONCEPT/ GOING CONCERN FORECASTS
- In a going concern forecast, according to section 252 HGB (German Commercial Code), projected net assets are calculated to assess solvency and total assets to cover debts during the forecast period are safeguarded. On the other hand, with insolvency law continued existence forecasts, a company’s sustainable existence is also reviewed and evaluated. A continued existence forecast, in accordance with section 19 German Insolvency Statute (InsO), answers the question whether a supervised company is subject to excessive indebtedness per insolvency law. This continued existence forecast is nothing more than a financial solvency prognosis for the current and following business year.
- We draw on IDW standards to generate a going concern forecast as well as a continued existence forecast, taking into account the individual factors relevant to your company’s forecast.
Our aim is to secure the continued existence of the company by strategic realignment. The focus lays on positioning the firm in it's focus markets, substainably and in the right way. With clear concepts and strategies for restructuring we are cutting the downward spiral and develop economically viable perspectives.
When finance partners are considering investing, maintaining or extending credit lines, they often request an economic sustainability assessment of your company’s business model. To this end, we generate integrated business planning and scenario calculations, or apply existing plans lending plausibility . We compile the following contents or draw on existing information:
- Deriving operative planning from strategic company planning (typecasting objectives)
- Drawing up plans or determining the plausibility of plans for sales, price, quantity and returns, based on analyses of markets, competition or benchmarking and benchmarks
- Ascertaining fiscal planning, based on the current situation
- We conduct sensitivity analyses and simulated calculations for, among others, sales, price or quantity fluctuations.
Furthermore, we support you in investor negotiations, defining, calculating and controlling covenants.
- Our profound commitment is to provide you with holistic and realistically doable reinforcement. In precarious situations, we not only advise, we guide your company through concept roll outs.
- We take your crisis management into our responsible hands, implementing emergency measures on the spot, including negotiations with investors and other stakeholders.
- We dynamically guide and execute the necessary recovery measures pragmatically and goal oriented. When requested or required, we take on CRO, CEO, CFO or executive responsibilities to build up stakeholder confidence or to protect the management from risk.
- We assume project management accountability for executing rightsizing procedures.
- We escort roll out. Leave your recovery controlling and reporting to us.
- We work closely with you and our subsidiary, CVM GmbH, to design, guide and coordinate the entire M&A process within our mutually developed rightsizing concept.