Reorganisation concepts and
reorganisation expert opinions (IDW S 6)

A reorganisation concept presents a plan for overcoming a corporate crisis. Investors frequently request a concept based on IDW (Institute of Public Auditors) Standard S 6.

As a rule a reorganisation concept contains:

• a comprehensive description of the company and its development,
• a detailed analysis of the economic circumstances of the company and its position in the market and among its competitors,
• an analysis of the causes of the crisis and the current stage of the crisis,
• a check that  insolvency has not yet occured,
• a description of the mission statement of the reorganised company and the reorganisation measures to be taken,
• an integrated business plan (containing income, asset and liquidity planning) and,
• a statement on the ability to reorganize.

As a general rule, a positive statement on the ability to reorganise assumes that the financing budgeted for the time period stated in the reorganisation concept has most likely been secured and that the company has the ability to become sustainably profitable again.

The requirements of the reorganisation concepts are – needless to say – complex. Generally, it is nearly impossible for larger companies to develop a reorganisation concept without external support.

Our experts can guide you through the entire process of developing the concept by:

• developing measures to be taken at once for maintaining liquidity,
• developing a strategy by taking the company’s core strengths and market opportunities into consideration,
• conducting the accompanying negotiations as well as
• supporting management for the duration of the reorganisation and implementation phases.