Key aspects of the analysis

Due to the singularity and the complexity of crisis situations, patented formulas for turnaround management are as good as non existing. Therefore, an individual restructuring concept must be put together and subsequently implemented - and that for each affected business segment.

Some examples of steps a restructuring concept encloses:

Focus on the markets:

• Analysis and evolution of market share
• Analysis of distribution chain and channels
• SWOT analysis, to establish competitive position
• Analysis of profit patterns and malfunctions of the competitors
• Market research on actual and potential clients
• Checking status of technological innovations
• Assessing innovation potential of the company
• Fulfillment of strategic growth key-driver

Focus on the costs:

• Examine processes, eliminate redundancies
• Streamlining the management structure
• Checking the controlling and reporting tools
• Centralisation / decentralisation degree - outsourcing if possible
• Optimising the procurement terms and procedures
• Clearance of internal organisational problems
• Streamlining the coordination between procurement, production and sales
• Improving the purchase order processing
• Optimising production cycle and therewith achieving lower raw material / work in progress / semi-finished products stocks
• Achieving measurable personnel and non-personnel costs reduction
• Cutting-back clearance rights and approval limits for expenses
• Freezing personnel resources
• Allowing leasing personnel agreements to run out
• Attaining waiver from salary increases and variable remuneration components (especially for top management)

Financial-focused steps:

• Drafting forecasted balance sheet and profit and loss accounts - Business Plan
• Downscaling the balance sheet through active working capital management
• Asset stripping / separate treatment of non-core assets
• Generating cash flow planning and facilitating active cash management
• Rescheduling equity and debts