Integrated corporate and liquidity planning
Integrated corporate planning links the content and calculation of the balance sheet, income statement and cash flow statement, and thus the central accounting units of the annual financial statements, to form a consistent overall plan. KPI development and the financial stability of the company can be analyzed on this basis.
Liquidity planning is a central component of integrated corporate planning and aims to determine the expected liquidity position. All expected cash flows during the planning period are recorded so that solvency can be analyzed and risks can be counteracted.
Independent Business Review
An independent assessment of the current situation is often required, especially in situations of upheaval or crisis. With an objective opinion in the form of an Independent Business Review, we provide important information about the current situation of the company and current options for action. In this way, we create a basis for well-founded decisions for lenders and other stakeholders.
Continuation and going concern forecast, analysis of debt service capacity
If there are identifiable risks to the company's continued existence, a going concern forecast under commercial law must be prepared based on integrated corporate planning. The more concrete the indications of an impairment of the company's development are, the more detailed the effects must be analyzed and assessed. The forecast must cover a period of at least 12 months from the reporting date.
If there are concrete indications to assess whether the company is insolvent or overindebted, a going concern forecast must be prepared in accordance with insolvency law. As a solvency forecast, it enables a statement to be made as to whether sufficient financial resources will be available within the framework of the future earnings and liquidity situation to be able to service the liabilities due in the planning period. Based on the liquidity at the reporting date, the viability of the company within the forecast period is determined on the basis of the corporate concept and the financial plan derived from the integrated planning (balance sheet, income statement and cash flow planning). A positive going concern forecast exists if the company is able to settle its liabilities at any time and the going concern is largely probable according to an overall assessment.
Restructuring reports according to IDW S 6
The objective of a restructuring report is to assess the restructuring capability of the company in crisis. Beyond mere solvency, it must be possible to regain both competitiveness and profitability through suitable restructuring measures.
In order to answer these far-reaching questions in connection with the ability to restructure, IDW S 6 defines core requirements for restructuring concepts, which are typically dealt with in a restructuring report:
- Description of the subject matter and scope of the contract
- Basic information on the economic and legal situation of the company in its environment, including the asset, financial and earnings situation
- Analysis of the stage and causes of the crisis, including an analysis of whether there is a risk of insolvency
- Presentation of the mission statement in connection with the restructured company's business model
- Measures to overcome the corporate crisis and avert the risk of insolvency
- Integrated business plan
- Summarized assessment of the ability to restructure
- Depending on the nature of the corporate crisis, different priorities can be set as part of a restructuring concept.
