Process and Restructuring Consulting

Restructuring Consulting and Insolvency Assessment

We figure out what still is possible if nothing more seems possible.
 

Restructuring Consulting

Consulting services in the field of a restructuring environment can usefully be divided into two dimensions, by their initiation and by their formal aspects.

  • Voluntary self-initiated restructuring counseling or restructuring counseling initiated by stakeholders, e.g. by banks or shareholders.
  •  Form free restructuring counseling or a certified restructuring report by IDW S 6.

iNUX Meyer & Partner pursues a market-oriented restructuring concept. Hereby we include the generally accepted principles of planning & budgeting (e.g. GoP 2.1.) in the restructuring approach.

Successful enterprise restructuring depends essentially on accessing and integrating entrepreneurs and employees with respect to the restructuring scenarii. Empirically, the main reasons for the failure or poor implementation of a restructuring plan are that the management or the company are being left alone after creating the recovery plan. – We at iNUX Meyer & Partner do remain on board until the end of the implementation of measures proposed and their proven effectiveness.

The creation of individual restructuring plans addressing the company’s particular needs is a key strength of our approach. This is for small and medium-sized companies even more important than in large corporate organizations. We pay particular attention to the expectations of banks and other stakeholders as key decision-makers in a restructuring situation.

We address the client-need of a certified report on the reorganization or restructuring situation by the compliance with the standard of the Institute of Chartered Accountants in Germany (IDW). The standard IDW S 6 formulates the requirements for the preparation of restructuring plans in accordance with the committee of the Institute of Chartered Accountants restructuring and insolvency (FAS). The reorganization during the formal legal process of bankruptcy plays under the IDW S 6 (see above) only a marginal role. The standard has as its main objective the avoidance of insolvency. However, there are needs too in that stage.

Insolvency Assessment

We advice on insolvency and the assessessment of legal insolvency indicators.

At iNUX, our assessment of the existence of insolvency indicators follows already the draft standard IDW ES 11 from 06.05.2014.

The legal framework clearly regulates the responsibilty of the CEO. He is personally liable to control the course of his enterprise and to have a true and fair overview of the activities at all times. He is liable in the sense of criminal law as well as he warrants with all his private assets. He has the duty to set up appropriate systems that allow him any time to properly assess the profitability, liquidity and asset situation.

In a crisis management and supervisory bodies do face the challenge to align „desire and ability“. The further the crisis has evolved already, even the more frictions will slow down  operations and require additional resources. In addition, legal requirements on monitoring duties of the management and supervisory bodies increase.

All the more reasonable are timely implementation of those requirements and routine tracking of the operational activities. This contributes to robust early warning indications and thus increases the time period for still likely effective countermeasures. This rational approach saves resources and protects against liability risks.