Short-Term Liquidity Planning
- A short-term liquidity plan has to include sound financing strategies for the period of concept creation, as well as provide possibilities to conduct negotiations with the financial partners.
- A solvency check will be performed according to the current jurisdiction of the Federal Court of Justice (liquidity status, 3-week plan).
- Generally speaking, a short term liquidity plan covers a period of at least 13 weeks.
- Payments on account are planned according to the actual time limits for payments, whereas disbursements are planned according to the time limits for payments as specified in contractual agreements.
- An insolvency check generally delivers clear results.
- An impending insolvency can lead to an immediate duty to file an insolvency claim due to over-indebtedness
- in the case of financial over-indebtedness, an impending insolvency can also lead to liquidation values as well as
- to a lack of positive continuation forecasts from limited companies.
- If deemed necessary in order to evaluate possible grounds for insolvency, HANSE Consulting would gladly call in a specialist attorney for insolvency law.
Analyzing the Financial Position and Performance
An analysis of the financial position and performance of a company always examines a period of several years. This allows for trends to be identified and conclusions to be drawn in order to make realistic assumptions about the plan.
- The analysis departs from the current interim accounts of all companies included.
- The analysis focusses on the critical balance sheet items and profit and loss items of the relevant business model.
- Inventories and claims will be analyzed and evaluated in detail.
- With regards to liabilities, the analysis typically focusses on fully and appropriately taking provisions and financial liabilities into account.
- It is important to identify hidden reserves and hidden costs that impact the future financial position of the company.
- The actual financial position and performance of the company becomes apparent.
The primary goal is to discern what the actual operative earnings performance is, to create the transparency required to fully understand the origin of funds and their use and, if necessary, to compile consolidated balance sheets.
- Profit: the goal is to create the transparency required to get an overview of the actual operative earnings performance of past financial periods
- Positive and negative one-off effects, as well as extraordinary and out-of-period effects
- Identify operative earnings and cost drivers within the relevant period
- Financial situation: a detailed cash flow analysis can show where funds were generated and to what end they were used.
- Detailed list of creditors and the collateral structure, sorted by companies and banks
- Company and group accounts respectively
- Compiling consolidated interim accounts
- Group accounts will be compiled for groups of companies, even if they do not constitute a corporation in legal terms
- Where applicable, subgroups accounts will be compiled, especially in the case of several circles of financiers within the corporation