Often, additional external influences on a company lead to the relentless disclosure of internal problems. Most corporate crises arise due to management shortcomings. According to studies, lack of controlling, lack of corporate planning, financing gaps, insufficient equity, excessive interest charges, insufficient provisions, inadequate accounts receivable management, management errors, an outdated product range and incorrect production planning are among the most common reasons for insolvency.
In order to avoid the occurrence of corporate crises or at least to limit their effects, you must have a clear view of all data and facts.
Integrated corporate management includes the necessary analyses of deviations between actual results and planned results. Here, it is necessary to put these into the right context and to self-critically question the essential issues. You as managing director and shareholder as well as your management team must be able to recognize and accept crisis symptoms at an early stage. Your risk management helps you to identify potential causes of crises in good time, and to reduce their impact.
If you recognize signs of crisis in your company, the planning and organization of a corporate restructuring is of outstanding importance. By reorganization we mean any measure to avert sustained negative developments on a company, the continuation of which can lead to a threat to the company’s existence.