Turnaround and Restructuring

The recovery of a company or business begins with a realistic assessment of the situation. To overcome operational or financial challenges and improve performance, it is essential to stabilise cash flow and collect or release liquidity quickly. At the same time, it is crucial to understand the root causes of the current problems and to identify realistic options for addressing them.

Recovery starts with a clear understanding of the situation

What has caused the company’s current challenges? Perhaps the market has shifted dramatically, and the company’s processes no longer support the necessary business transformation efficiently. Parts of the business may have become unprofitable. Identifying the problems allows corrective measures to be taken early enough.

We assist in assessing the actual liquidity position and building a solid foundation for business recovery.

Realistic view of opportunities

Depending on your company’s circumstances, the suitable approach to recovery may involve cost reduction, focusing on core business areas, or better utilisation of assets.

We help in identifying realistic opportunities for enacting change.

We offer support in recognising opportunities for strategic, operational, organisational, and financial transformation. Additionally, we help design and execute the required restructuring measures to guide the recovery process.

Addressing key issues in the transformation process

Turnaround is always a change management project. 

Our multidisciplinary team of experts supports you in focusing on the critical issues during the essential phases of change management, helping ensure success. 

Restoring trust among stakeholders requires understanding the differing interests.

Financial restructuring enables the continuation of business operations during financially challenging situations.

Identifying short-term financial needs, quickly stabilising the financial situation, and a credible financial restructuring plan improve the company's negotiation position with various stakeholders. 

How can we assist in Financial Restructuring?

We assess short, mid and long-term financing needs and the measures necessary to stabilise the financial situation. 

We help our clients to understand the differing interests of debtors, creditors, and owners, and to manage communication between stakeholders.

Together with our clients, we evaluate whether business disposals, carve-outs, or other M&A arrangements should form part of the financial restructuring plan, and assist in implementing such arrangements. 

Sometimes negotiations with creditors fail, and a company faces insolvency. If the situation has progressed to the point where voluntary measures are insufficient, formal in-court restructuring proceedings may become necessary. Restructuring proceedings allow for numerous measures to rehabilitate the business.

The goal is to avoid the unnecessary bankruptcy of a viable company. Corporate restructuring aims to navigate through the challenging phase and reorganise the company’s operations so that it can continue as a profitable and viable entity. / The goal is to avoid the unnecessary bankruptcy of a viable business. Restructuring proceedings aim to guide the business through the challenging phase and reorganise its operations so that it can continue on a going concern basis. 

How can we assist in Restructuring proceedings?

You will have access to KPMG’s experienced experts, who have successfully assisted clients in challenging situations. 

We have extensive experience in preparing restructuring applications, assisting clients during restructuring proceedings, and assessing the impact of restructuring. 

Leveraging our extensive expertise in labour law and personnel matters, we support our clients in the strategic planning and implementation of redundancies. 

Our services are also available to creditors involved in insolvency proceedings. 

Accelerated Restructuring Procedures

An additional restructuring option is the so-called accelerated restructuring procedure, which combines voluntary and statutory restructuring methods to establish a restructuring program for the company as quickly as possible. Accelerated restructuring can be a good option if the conditions for its implementation exist.

KPMG’s experts in insolvency law have also successfully carried out accelerated restructuring procedures.