Turnaround
Valuation according to IDW S11: Realistically assessing restructuring opportunities
Before a turnaround report according to IDW S6 can be drawn up, it must first be checked whether the company is at risk of insolvency or over-indebtedness. This assessment is based on two key elements: the company's financial status and sound financial planning derived from a robust business concept. The valuation in accordance with IDW S11 provides precisely this basis for decision-making and creates transparency regarding a company's economic situation and ability to restructure.
Clarity on insolvency or over-indebtedness
One component of the valuation in accordance with IDW S11 is the analysis of the company's financial situation. This initially includes the preparation of a financial status in order to assess the current solvency. If this is negative, a short-term financial plan is drawn up for at least four weeks.
In addition, the liquidity requirement for the next twelve months is calculated, as this must be covered with a high degree of probability in order to ensure a positive going concern forecast. If this forecast is negative, an asset status is also prepared in order to check for potential over-indebtedness.
According to the case law of the Federal Court of Justice, the forecast on the feasibility of the restructuring must be prepared by an independent and expert third party.
Two crucial questions
Two criteria are decisive: Insolvency pursuant to §17 InsO must be excluded, i.e. the company must still be able to meet its payment obligations as they fall due. In addition, there must be no over-indebtedness in accordance with Section 19 InsO - this would be the case if the net assets under liquidation values are negative and there is no positive going concern forecast.
A valuation in accordance with IDW S6 and IDW S11 is a decisive building block for a successful restructuring.
Contact us. We support you in the valuation and implementation of your restructuring strategy.
IBR and plan plausibility check
An Independent Business Review (IBR) provides an objective assessment of a company's economic situation and evaluates the viability of planned measures.
Preventive restructuring (StaRUG)
Preventive restructuring in accordance with StaRUG gives companies the opportunity to restructure themselves outside of insolvency proceedings, restructure liabilities and create viable prospects for the future. Our approach combines legal security with economic foresight to get companies back on track at an early stage through targeted measures.
IDW S6 turnaround report
When a turnaround report in accordance with IDW S6 is required, far-reaching decisions have to be made: Is the company still capable of being restructured? Are there realistic prospects for the future? The expert opinion creates transparency for banks, investors and management by combining both economic rationality and legal requirements. Our practical approach not only provides a reliable analysis, but also a viable turnaround concept - fast, well-founded and implementation-oriented.
Valuation according to IDW S11
Before a turnaround report in accordance with IDW S6 can be prepared, it must first be checked whether the company is (at risk of) insolvent or overindebted. The valuation in accordance with IDW S11 provides precisely this basis for decision-making and creates transparency regarding the economic situation and restructuring capability of a company.
Your contact person:
Malte Foegen
