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Reorganization, restructuring and receivables advice.
The owners of DEUTSCHE PFANDVERWERTUNG are reorganization and restructuring consultants certified by the IfUS Institute (Heidelberg).
Our original task as generally publicly appointed, sworn auctioneers is to bring about short-term solutions for the realization of claims or liabilities for creditors and debtors in the case of non-performing contracts. In contrast to bailiffs, we always pursue a commercial approach in order to achieve the best possible results. We take both positions into consideration, as we are sworn to our independence in the proceedings and consider the situation of debtor and creditor equally.
We have always been familiar with companies in crisis and corporate insolvencies in the course of our work. Experience has shown that the causes of economic difficulties lie predominantly in the commercial area. It is therefore obvious that commercially experienced experts should initially work out a pragmatic, viable solution.
Restructuring concepts are also offered by law firms. The question therefore arises as to why a lawyer sometimes sees himself as the sole advisor in the commercial sector to prevent companies in crisis from being broken up or becoming insolvent. Legal advice is undoubtedly valuable and often indispensable in the context of corporate restructuring. However, our experience shows that even very experienced lawyers outside their core legal expertise do not understand the company’s situation from a commercial perspective in the same way. For lawyers, the reality of a company appears primarily as a space structured by norms; their focus is consequently first and foremost on risks, liability situations and the limits of what is permissible. In a crisis, however, the entrepreneur primarily needs reliable, pragmatic answers as to what is possible under the given framework conditions.
We are not lawyers. As commercially experienced experts, we take a pragmatic approach: What is feasible? What are the realistic options? How can a viable solution be found in the short term to end the crisis? Based on these premises, we develop viable restructuring options for small and medium-sized companies in difficult situations. We dispense with grandiose business and marketing phrases — we work soberly, purposefully and with an eye on the result.
In professional restructuring and reorganization consulting, the first premise is to find out how the performance potential of an ailing company can be rebuilt in order to achieve profitability that preserves its existence. As the Gabler Wirtschaftslexikon aptly summarizes, restructuring is a complex, goal-oriented, time-limited sequence of actions with the aim of restoring sustainable profitability to companies in crisis. This requires the multidisciplinary knowledge of a team qualified for this task.
We work together with auditors and tax consultants, business economists and lawyers on a case-by-case basis.
Overcoming corporate crises is one of the most challenging management tasks. There are no universal patent remedies, as every company has its own structure and dynamics. Nevertheless, corporate crises can be analyzed in accordance with IDW S 6 using a uniform, proven system in order to precisely identify the causes of a crisis.
At the recommendation and suggestion of banks, we carry out modern restructuring management in a team with restructuring experts in accordance with IDW S 6 using a proven system:
Level 1
1. analysis of the cause of the crisis and the stage of the crisis in the company
- Causes and symptoms of the crisis
- Crisis stages
2. early crisis detection and early warning systems
- Early crisis detection from the entrepreneur’s perspective
- Key figures for crisis diagnosis
3. review of insolvency facts
- Legal framework
- Insolvency filing deadlines
- Reasons for insolvency in detail
Stage 2 — Out-of-court restructuring
1. preparation of restructuring concepts
The reason for the preparation of restructuring concepts are the minimum requirements for the risk management of credit institutions ‑MaRisk BTO 1.2.5 for the treatment of problem loans. The restructuring plan serves to provide a comprehensible and conclusive presentation of a company’s ability to restructure.
2. strategic restructuring concept
- Phases of restructuring
- Strategically induced determination of the need for change
- Building blocks of restructuring and strategic dimensions
- Strategic restructuring content
- Added value through strategic restructuring
- Strategic success factors
3. performance-related (operational) restructuring).
- Success factors for sustainable performance-based restructuring
- Successful restructuring through the holistic redesign of the business model
- Five dimensions of value-oriented business models
such as value position, value proposition, value creation, value extraction, value discipline
4. financial restructuring measures
- Financing requirements in the refurbishment phase
- Maturity-oriented restructuring measures
- Liquidity-oriented restructuring measures
- Capital-structured restructuring measures
- Safety-oriented restructuring measures
5. integrated financial and restructuring planning
- Rolling liquidity planning for 13 weeks on a weekly basis
- Components and structure of integrated financial planning
by profit plan (income statement), liquidity plan, balance sheet plan - Plausibility check of the planning calculation
- Use of standard software solutions
6. implementation of refurbishment projects
- Appointment of the CRO/reorganization manager
- Appointment of interim managers
- Involvement of management consultants
- Setting up a Project Management Office
- Implementation of measures
- Transfer of responsibilities back to the company
- Monitoring the restructuring process through controlling
Special aspects of the corporate crisis
1. special legal features in the crisis
- Civil and criminal law aspects in the corporate crisis
2. crisis management in consideration of the financing banks
- Banking supervisory framework
- Alternative courses of action for credit institutions
- Support for the restructuring by banks
3. alternative courses of action for trade credit insurers, lessors and factoring companies
4. from a labor law perspective
- possible restructuring measures under labor law
such as staff reductions, termination of employment relationships, changes to material working conditions, possible restructuring measures under labor law such as staff reductions, termination of employment relationships, changes to material working conditions, restructuring, changes in the relationship between the employer and the works council and trade unions, short-time work
5 M & A in the crisis and insolvency situation
- Distressed M&A process flow for companies in crisis
Motives on the seller and buyer side, transaction structures and possible transaction forms, valuation and purchase price determination
6. tax aspects of restructuring
- Taxation of restructuring profits
- Expiry of loss carryforwards
- Retention of loss carryforwards in special cases
- Individual restructuring measures and their tax implications
Level 3
1. remediation by applying the StaRUG procedure
- Stabilization and restructuring framework
- Organization of legal relationships
- Group formation
- Plan offer and plan acceptance
- Restructuring moderation
2. restructuring after insolvency
- Restructuring alternatives under the German Insolvency Code (SanInsFoG)
- Preliminary talks with the insolvency court
- The insolvency plan
- Restructuring instruments in insolvency proceedings
- The self-administration
- The protective shield procedure
