Reasons for a reorganization expert opinion according to IDW S6
Liquidity bottlenecks in the face of negative earnings development are a typical trigger for restructuring appraisals. Your financiers or shareholders find it difficult to grant you additional credit and tend to think about reducing their commitment to you. A restructuring expert opinion (often according to the IDW S6 standard) is required.
But it is not only financiers or shareholders who can demand the preparation of restructuring reports.
In the automotive industry, where the reliability of the supply chain is particularly high due to the dependence on individual suppliers, OEMs can demand reorganization reports from suppliers if their economic situation has developed critically.
And finally, there are situations in which companies themselves commission a restructuring opinion, e.g. in order to be prepared for expected difficult financing negotiations. And to gain time, because the negotiations should not be delayed by the preparation of a restructuring opinion.
HANSE Consulting is regularly requested and accepted by banks and companies as an expert in these situations. We succeed in restoring the understanding of the economic situation and the confidence of financiers and business partners with our well-founded expert opinions and the restructuring concepts contained therein.
Contents and requirements of a reorganization expert opinion
The requirements for a restructuring opinion are more standardized than for an IBR (Independent Business Review). The IDW S6 standard issued by the Institute of Public Auditors in Germany is authoritative in this respect. However, this is not a legal standard. In recent years, it has therefore become increasingly accepted that the legally binding BGH minimum requirements must be observed, even if the IDWS6 is not required. A reorganization report therefore always contains Section 19 InsO and survival prognosis to Section 252 (1) No. 2 HGB, so that it can be used as a basis for financing decisions.
In terms of content, it is essential for restructuring reports to include all aspects of a company or group of companies. The basis for the assessment is knowledge of the company’s individual business model and strategy.
Why HANSE Consulting?
With our experienced team of consultants, most of whom have practical experience from line and management positions and interim activities in addition to their many years in consulting, and the expertise gained from over 25 years in restructuring, we are familiar with the strategies and business models of many industries and types of companies.
With our holistic approach to the preparation of restructuring reports, we cover all requirements of the IDWS6 from financial analysis and performance management to the assessment of management and market and competition. As entrepreneurs and restructuring consultants, we focus on the joint development and planning of restructuring measures, because improving our clients’ profitability and liquidity is our most important task.
Please also read our news article on the subject of efficient liquidity planning.
Frequently, the economic situation in which a business partner requests a reorganization opinion has already become so difficult that the proximity of possible insolvency is also being discussed. With the specialist lawyers from our network, we can also advise you in such situations about all the options for overcoming the crisis.
We would be happy to inform you personally in more detail about our offer for your needs. Contact the managing directors of HANSE Consulting personally or click on the button below for direct and quick contact.