Restructuring Advisory Services

In the context of M&A transactions, companies and capital providers rely on a thorough risk assessment and status analysis to gain a clear understanding of the company’s current standing.

Our restructuring certifications and continuity forecasts are conducted in strict alignment with the latest rulings of the Federal Court of Justice (BGH) and adhere to the prevailing standards set by the Institute of Public Auditors in Germany (IDW). In particular, we follow the requirements of IDW S 6 "Requirements for Restructuring Concepts" and IDW S 11 "Assessment of Insolvency Triggers."

We independently assess management’s "going concern" assumptions and, if desired, provide a comprehensive report on the company’s viability and restructuring potential, as well as its insolvency-related obligations. This restructuring opinion not only provides legal assurance for management but also serves as a critical tool for negotiations with creditors—including banks, investors, trade credit insurers, and other stakeholders—and prospective buyers. Our objective analysis offers a holistic view of the company's viability, evaluating its sustainability and restructuring potential. As impartial advisors, we scrutinize the business plan and management’s financial projections and conduct independent feasibility assessments.

We evaluate the soundness and potential effectiveness of existing restructuring concepts and review the company’s current and projected solvency as well as its potential over-indebtedness. This comprehensive and unbiased expertise helps build or restore trust in the business. Especially in cases of negative equity, we strongly recommend a continuity or restructuring viability forecast to avoid insolvency-triggering over-indebtedness and the associated liability risks.

As an independent and expert advisor, ConAlliance provides analyses including business reviews, going-concern opinions, restructuring assessments, and insolvency evaluations. Our reports highlight essential opportunities and risk factors for all stakeholders, creating the transparency necessary for informed decision-making. This transparency is crucial for a holistic and collaborative restructuring process.

Corporate crises can originate from both strategic and operational missteps: flawed product strategies, weak sales performance, high costs, neglected or misguided investments, heavy reliance on specific suppliers and customers, and poorly conceived or overpriced acquisitions. Often exacerbating these issues is inadequate control, which prevents timely identification of weaknesses and operational misalignments. Furthermore, insufficient financial and liquidity planning can jeopardize even fundamentally sound companies.

Corporate crises typically progress through distinct phases: initially, a strategic crisis, which then escalates into a performance crisis, followed by a liquidity crisis. Ultimately, insolvency is the logical consequence as the likelihood of this outcome increases across each stage. A loss of market share at the onset quickly erodes operational performance. An ill-conceived or misaligned corporate strategy leads to value-destroying investments with a negative net present value, diminishing overall enterprise value. This evolving performance crisis manifests in declining profitability, resulting in annual deficits and negative returns on capital.

Consequently, cash flows deteriorate, increasing the reliance on external financing and elevating additional debt costs.

Without effective countermeasures, the liquidity crisis inevitably leads to insolvency and over-indebtedness.