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Financial Restructuring

Financial Restructuring

TPA supports restructuring and recovery to efficiently lead companies to new strength during economic crises.

Reorganisation and restructuring

Getting back on track - We support you in the reorganization and restructuring of your company

In times of economic challenges, a realignment, reorganization and restructuring of the company is often unavoidable. Professional support is crucial in the face of these often new challenges. Our experienced TPA experts support you in economically turbulent times with tailor-made concepts that can be implemented efficiently even under time pressure to improve your financial situation, increase operational efficiency, and ensure long-term success.

What is a restructuring?

Restructuring is a process in which a company makes fundamental changes to its structure, organization or business activities in order to increase its efficiency or overcome its financial challenges. It can take various forms, such as restructuring or preventive measures to avoid impending insolvency. Insolvency law sets out clear rules for the process of such restructuring, in particular to protect the interests of creditors. Companies facing financial difficulties often opt for preventive restructuring to tackle problems at an early stage and maintain their competitiveness in the long term.

Our Services for You

  • Analysis of the causes of the crisis or loss and suggestions for improving performance
  • Preparation of going concern forecasts and planning calculations for the company
  • Advice and support with financial and operational restructuring
  • Preparation of and advice on restructuring concepts
    • Preparation and review of a restructuring plan
    • Supporting and monitoring the implementation of defined restructuring measures
  • Support with liquidity and cash flow planning and refinancing
    • Status quo analysis, short and medium-term liquidity requirements
    • Support with financing issues and bank negotiations
    • Search for investors for long-term continuation (financial investor, strategic investor)
    • Accelerated M&A (accelerated M&A transactions with shortened process duration and inclusion of financing partners)
  • Insolvency-related consulting
  • Assistance in negotiations with capital providers and investors

We also provide competent support for specific tax issues in the area of restructuring and financing. In case of cross-border activities, we are happy to provide our comprehensive consulting services jointly with our colleagues from Bakertilly.

Are you interested in other services? You will find an overview at: Tax Advisory

Is your company really in crisis?

Our most important tools are not calculators, spreadsheets and the latest technologies, but a keen eye, a sharp ear, the right intuition, and an honest conversation. Our experts help you determine with standardized tools whether your company is truly in crisis and how to best stabilize it financially.

Does your company have negative equity on the balance sheet in the annual financial statements? Managing directors should act promptly to avoid economic damage or liability consequences.

Everything you need to know about negative equity in the annual financial statements

According to § 225 (1) UGB, negative equity exists when a company’s equity is depleted by losses. If there is such an “accounting” over-indebtedness, it must be explained in the notes whether there is over-indebtedness within the meaning of insolvency law, which would oblige the managing director to file for insolvency.

Detailed information on negative equity in the annual financial statements can be found here.

In the event of “accounting” over-indebtedness or insolvency, an “over-indebtedness balance sheet” at liquidation values and/or a “going concern forecast” must be used to check whether this also constitutes over-indebtedness under insolvency law. There is no specific order in which to carry out these two examination steps, which is why a positive result from either of the two examination steps is sufficient. Within a going concern forecast, the payment and survival capability of a company is evaluated.

If the company’s insolvency is likely, entrepreneurs have the option to apply for the initiation of a restructuring proceeding according to the Restructuring Act (Restrukturierungsordnung, ReO), which came into effect in July 2021. Detailed information on the Restructuring Act can be found here.

Over-indebtedness under insolvency law, and therefore “real” negative equity, exists when both the over-indebtedness balance sheet and the going concern forecast turn out negative. In such a case, the managing director is obliged to file for insolvency without undue delay, but no later than 60 days after the occurrence of the insolvency event.

A restructuring plan offers debtors in insolvency proceedings the opportunity to reach an agreement with creditors. An application to conclude a restructuring plan can be filed concurrently with the application to open insolvency proceedings, aiming for partial debt forgiveness and a deferment of debt payments.

Contact our experts

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