Turnaround and Restructuring

Turnaround and Restructuring

Experience, professionalism, speed – these are the key success factors

You can rely on us even in difficult times as a robust partner for holistic and effective crisis management in the short term. We secure our success by assignment of experienced interim managers, mostly as CRO/CEO.

You will feel completely comfortable with IMACOS management of integrated teams of experts and close involvement of your managers and staff.

We can also provide complete management teams with 10 or more professionals. That may sound like a “major project”, but it is not. If the liquidity drops below 3-month revenue, then it’s really five minutes to midnight and the insolvency can usually be only averted with radical measures. There’s no time to wait for the outcome of a going concern opinion – it can be issued by our own experts. In this case, however, the whole procedure starts parallel to the implementation of restructuring measures. Otherwise, it can be often too late to turn things around again.

It can often happen that all key company functions must be supported or even completely replaced. This means that already in the case of companies with annual sales of € 80 million the successful turnaround can only be achieved if joint teams of 5 or even 10 professionals are brought into action.

The IMACOS experts conduct professional negotiations with customers and suppliers:

Thus, in most cases in 3 to 4 weeks liquidity of 1-month revenue can be achieved. We check the order basis of existing contracts and commence renegotiation in case of clearly inadequate prices, improve the bases of new contracts and inspect the conditions for the supply of materials. But we also take into consideration the interests of the suppliers. It should be a win-win situation for everyone or the restoration won`t work.

The effective and good-faith negotiations with lenders and credit insurers are critical to the success of restructuring:

If confidence is lost it must be quickly restored. This can often be achieved only by external independent experts and mostly only by the entry of a CRO in the guide rail.

Mediation and consensus building within partner groups

Many renovations fail because the restructuring expert does not conduct himself/herself the negotiations with the shareholders. In case of complex shareholder structures, this can rapidly turn into a full-time job for an experienced mediator – mostly a lawyer, who should also take into account all legal aspects.

Negotiations with employee representatives on short-term cost adjustments

In many cases it is necessary to involve staff professionals for the negotiations, who have longstanding experience of negotiating not only with employee representatives, but also with the union leaders. The company’s own resources are often overwhelmed and usually there is no time for long discussions.

Set-up of transparent financial structures, including calculation

Without the creation of transparent financial structures neither can the liquidity status be clearly determined, nor can the necessary business plans for the going-concern assessment be developed. They provide an important basis for the decisions on the continued support not only for banks but also for corporate customers and suppliers.

The development of reliable calculations that take into account all costs, are the basis for the price negotiations, solutions for loss-making products or choice of future sales and earnings sources.

Short-term cost reduction, process improvement and quality assurance are the foundation of a successful turnaround

Key individual measures include: reduction of working capital, procurement costs and overhead costs, streamlining of management structure, implementation of strict quality assurance measures, including the execution of internal quality audits.

Address legal and tax issues

Company structures, tax optimization, liability issues, legal advice to insolvency, deployment of insolvency trustee or custodian