• Cause of consultation

Crisis, Turnaround & Restructuring

Crises have many causes: Dynamic negative changes in external factors and consequences of past management decisions. If crises become apparent, planned and rapid action is required.

Serious external influences such as increases in the prices of goods and services, problems in the supply chains or in the security of supply of important raw materials can bring companies into critical and possibly existence-threatening situations. Very often, but by no means always, these external influences expose the company’s existing internal problems. Most corporate crises arise due to management mistakes. According to studies, lack of controlling, lack of corporate planning, financing gaps, insufficient equity, too high an interest burden, insufficient provisions, inadequate accounts receivable management, management errors, an outdated product range and incorrect production planning are among the most common reasons for insolvency. Here, negative external influences have a broad attack surface.

In order to avoid the occurrence of corporate crises or at least to limit their impact, you need to have a clear view of all facts and figures.

Integrated corporate management includes the necessary analyses of deviations between actual results and planned results. Here, it is necessary to put them in the right context and to self-critically scrutinize 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 paramount importance. By reorganization we mean any measure to avert lasting negative developments on a company, the continuation of which can lead to a threat to the company’s existence.

Crisis situations are very critical for you and your company because extensive legal provisions apply to companies in crisis. Failure to comply out of ignorance leads to liability risks just as much as a deliberate violation.

The chances of recovery depend on the speed of your response to the crisis. Your own early reaction can in many cases prevent the need for reorganization from becoming apparent in your environment due to negative circumstances and reorganization managers from your banks and financing institutions from taking over the “reigns” in your company.

In many cases it is very helpful for entrepreneurs and managing directors to discuss the company situation and possible action alternatives with a competent partner at an early stage.

We are independent and work with you to create the basis for accepting and adopting the company situation and the necessary reorganization steps as quickly as possible. Crisis management can be the perception of opportunities for change and improvement. Here it is important to analyse and assess the current situation and the possible effects in order to then be able to make the necessary decisions – even if in some cases these are far outside the expectations of the owners and the managing directors.

THE MAK’ED TEAM analyses the situation of your company and advises you on the steps necessary for a successful restructuring.

We provide the necessary expertise, know-how and capacity to ensure the required rapid responses. As an independent consultant, we fulfil the necessary formal requirements and prepare reorganization concepts and expert opinions in accordance with the IDW S 6 standard.

We are makers.

We see ourselves as MAKERS, partners and project managers for our clients with the aim of pushing their future viability. With our high level of practical knowledge and our many years of international experience, we work worldwide.