Success factors for complex restructurings

Experts fear at least 43,000 corporate insolvencies in 2009, more than in the major crisis years of 2004 and 2005. The global economic crisis is affecting a large number of companies in various sectors of the economy. The companies most at risk are those whose sales revenues are falling disproportionately and which were not able to offer lush returns and equity capitalization even before the crisis.

In addition to the slump in sales, medium-sized companies are struggling with massive financing problems. Despite public credit programs and billions of euros in support for the banks, these funds are being passed on to the affected companies only very hesitantly. The banks first restructure their own balance sheets. Many companies are facing tough and thorough restructuring, which despite severe cuts also offers an opportunity for a turnaround. Professional support can help avoid a lot of mistakes here. Not just on paper, but "hands on" in the day-to-day business of the companies. The first step is to openly analyze the weak points and act quickly. Various measures can contribute to the stabilization and recovery of the company.

Continuation prognosis and reorganization expert opinion according to IdW

New legislation has been in force since November 2008: The Financial Market Stabilization Act (FMStG), as amended on September 18, 2009, temporarily suspended the "over-indebtedness" ground for filing for insolvency for corporations until December 31, 2013, provided that a positive going concern forecast can be presented. As a result, the requirements for a positive going concern forecast have increased considerably: positive prospects for the next three years must be established and certified in the areas of investigation of solvency, competitiveness and sustainable profitability with an overwhelming probability. This requires a great deal of experience if the company is to be analyzed in a short time and future forecasts are to be assessed together with the entrepreneur.