Restructuring Concepts and Opinions

Overview

If a company encounters financial difficulties, even through no fault of its own, or significantly falls short of its financial targets, lenders in Germany generally require a restructuring opinion (also referred to as a restructuring concept). IDW S6 and current case law of the German Federal Court of Justice (BGH) serve as the key frameworks in this context.

As a sound and independent assessment, a restructuring opinion provides management, lenders, suppliers, credit insurers and other stakeholders with a high degree of assurance regarding avoidance and liability risks.

A restructuring opinion is based on a comprehensive analysis of the company’s financial and economic situation and an objective assessment of its ability to restructure successfully. The process begins with a systematic identification of the root causes of the crisis. In parallel, the company’s liquidity situation is analysed and, where necessary, stabilised through short-term measures. Building on this, a detailed overall view of the company’s assets, financial position and earnings, as well as its market and competitive position, is developed. Based on these findings, potential improvements are identified, specific measures are developed and incorporated into an integrated business plan. The restructuring opinion therefore not only meets the requirements of lenders but also provides a robust, forward-looking roadmap for sustainable business development.

At the outset of the project, we jointly define the key areas of focus to ensure an efficient process and robust results. In doing so, we proactively draw on our experience from a wide range of successful projects.