Navigating the crisis successfully
No singular perfect plan to financial restructuring is in existence due to the fact that a multitude of company-specific needs have to be taken into account. From the „colorful myriad“ of options one has to cleverly couple those that in their combined power ensure the financial liquidity for restructuring and furthermore, restore capital and remain true to the stakeholders.
Options of capital procurement
To procure the financial means and re-establish equity several different measures with different impacts can be taken:
- cash contribution
- silent partnership
- cancellation of debt subject to restoration from debtor
- contribution in kind
- disclosure of hidden reserves
- active working-capital-management
- guarantees from federal states for investment loans and capital loans
- liquidity assistance loan from the Kreditanstalt für Wiederaufbau (KfW).
The integrated restructuring plan as a realistic way to the goal
The implementation of the findings in measures requires tact, a sense of proportion – and speed. The implementation schedule sets priorities within specific measures and regards their correlation. An essential control element for the scheduled implementation is the implementation controlling, which determines the achievement by measuring and analysing potential plan deviations.
The expected effects of the implementation schedule including all restructuring costs will be displayed in operative detailed plans, from which a plan-profit and loss account statement, a financial plan and a projected balance sheet will be developed. The result is the integrated restructuring plan. Critical suppositions and insecurities have to be especially accented, e.g. the development of the raw material price or competition and third-party contracts. Those will be displayed in differing planning scenarios. Additionally, specific reference numbers by which the remediation process and the achievement of objectives can be seen will complement the implementation schedule.