Restructuring
Adverse developments call for clear decisions, a structured approach and the know how to see it through.
Adverse developments call for clear decisions, a structured approach and the know how to see it through.
A crisis rarely begins suddenly. Falling revenue, shrinking margins and declining earnings increase the pressure on the company and at the same time narrow its room for manoeuvre.
To turn a difficult financial situation around, restore earning power and secure liquidity, a professional restructuring process is needed. The first requirement for a successful restructuring is a well founded analysis of the company's situation.
Transparency makes decisions possible and protects against activity that has no effect. We analyse the causes and separate them from the symptoms. That allows the approach to be prioritised. Only those who understand exactly where the company stands can act purposefully, effectively and responsibly.
We analyse the market, customers, products, organisation and finances and set out the causes of the crisis. In doing so we make visible which levers have the greatest influence on earning power, liquidity and the development of the company.
On this basis we develop a target picture for the future direction of the company and derive concrete restructuring measures. Every measure is tied to clear goals, responsibilities and key figures, so that progress is measurable and deviations become apparent early.
At the same time communication becomes more important during difficult phases. Employees, customers, suppliers, banks and owners need orientation and confidence in the changes being made. That is why we create the necessary transparency and ensure communication that is comprehensible, reliable and consistently focused on delivery.
Being able to pay at all times is a company's central obligation. To guarantee this in difficult situations, a rolling weekly liquidity plan is the basis for steering liquidity at all. Planning incoming and outgoing payments shows when liquidity gaps will arise and how large they will be. That increases the likelihood of closing those gaps in time. We support this active liquidity management.
„Banks can handle risks, no surprises.“ In a tense situation, sound financial communication is essential. We structure the information given to lenders, who have to be told proactively about any deviation that affects a credit relationship or the bank's risk position. The right information to lenders creates the basis for them to extend credit within the regulation they are subject to, for example to close financing gaps.
Profitability is not created in the top line alone. Cost management is a central lever for judging what each cost contributes to the company's success. We look at cost adjustments and strategic goals as a whole, so that the planned changes can actually be achieved. In the tension between proportional costs and structural costs we find out which measures really work and align them with strengthening earning power.
In times of crisis, the value chain with its processes, workflows and existing dependencies is rarely examined. The interplay between incoming orders, production, warehousing, logistics and so on offers many starting points for improving liquidity and earnings. End to end processes, needs driven purchasing and reducing the number of variants are only examples from a broad range of measures that can make a substantial contribution to liquidity and earnings.
Earnings come from the contribution margins of the products and services sold. Without a clear view of the contribution margins behind revenue, actively steering earnings is barely possible. We make the contribution margin of revenue transparent and show which products earn money and which do not. Not infrequently a smart decision leads to less revenue but to a higher contribution margin and higher earnings.
Get in touch with us. After one personal conversation you will know exactly what THE MAK'ED TEAM can do for your company.