Reorganisation Survey (IDW S6/BGH)
In the event of financial distress, external stakeholders often require the provision of a reorganisation concept or survey created by independent third parties. These have to illustrate a profitable realignment of company business in order to allow for (re)financing or simply for the extension of existing loans.
We create reorganisation concepts and surveys following the standard (S6) issued by the Institut der Wirtschaftsprüfer in Deutschland (German Institute of Certified Public Auditors) and the principles developed on the basis of the BGH (federal supreme court) decisions. Reorganisation concepts and surveys which are not in line with the federal supreme court’s minimum requirements are subject to legal and economic risks for the management.
The typical scope of reorganisation concepts / surveys comprises:
- Environmental and industry analysis (market and competition)
- Analysis of internal company structures (economic and financial)
- Analysis of crisis stage and crisis causes
- Analysis of company mission statement
- Evaluation and structuring of short-, medium-, and long-term restructuring measures in terms of appropriateness and completeness as well as analysis of impacts on net assets,
- financial position, and results of operations
- Integrated business planning and scenario analysis
- Assessment of restructuring capacity
As a preliminary step to a full reorganisation survey, we also prepare going concern concepts, including a positive going concern forecast as defined by § 252 (1) (2) HGB.