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.
An emerging crisis follows a clear logic. Falling sales, declining margins, and shrinking earnings increase pressure on the company while simultaneously narrowing its scope for action.
To turn things around in the event of financial distress, restore profitability, and secure liquidity, a professional restructuring process is required. A sound analysis of the company's situation is the essential first step for successful restructuring.
Transparency creates the ability to make decisions and protects against ineffective actionism. We identify the root causes and separate them from the symptoms. This allows for prioritization in our approach. Only those who truly understand where the company stands can act in a targeted, effective, and responsible manner.
We analyze the market, customers, products, organization, and finances to uncover the root causes of a crisis. In doing so, we identify the levers that have the greatest impact on profitability, liquidity, and the company's development.
Based on this, we develop a target vision for the company's future direction and derive concrete restructuring measures. Each measure is linked to clear goals, responsibilities, and key performance indicators so that progress is measurable and deviations can be identified early on.
At the same time, communication becomes increasingly important during difficult phases for a company. Employees, customers, suppliers, banks, and owners need guidance and confidence in the changes being implemented. We therefore create the necessary transparency and ensure communication that is comprehensible, reliable, and consistently focused on implementation.
The right methods and tools support a company's professional orientation.
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.
We showcase what we do for our clients and the impact our services have.
Get in touch! After a personal consultation, you will know exactly what THE MAK'ED TEAM can do for your company.