Restructuring and Turnaround

In a crisis, sequence decides: first make liquidity visible, then create room to act, then restructure. We provide the financial leadership that carries this operationally and delivers the data base for the restructuring concept.

Typical duration
6–12 months
Typical utilisation
4–5 days per week
Day rate
EUR 1,400–2,500

When this situation arises

Earnings have deteriorated, cash is getting tight, or a bank demands a restructuring concept before it extends lines. Often, exactly what is needed now is missing: a robust weekly cash forecast, an integrated plan and a clean three-year history.

Time pressure is high, the number of counterparties grows – banks, credit insurers, shareholders – and management is tied up in running the business.

What the interim CFO takes on

The interim CFO first takes over cash management: a rolling weekly forecast on the direct method, prioritisation of payments, continuous testing for illiquidity and imminent illiquidity. That is the stage without which everything else is moot.

Then the data base for the restructuring concept: an integrated plan of profit and loss, balance sheet and cash flow, reconciled balances, documented one-off and special effects. The opinion itself is written by an auditor or a specialised adviser – but the numbers come from the company, and the better they stand, the shorter and cheaper the opinion becomes.

Plus the communication with banks, credit insurers and shareholders, which in a crisis decides the room to act.

How it runs

Weeks 1 to 2: Situation report

Cash on a weekly basis, open liabilities by due date, credit lines and collateral, review of the grounds for filing for insolvency. Without this picture every measure is a guess.

Weeks 2 to 6: Stabilisation

Rolling 13-week forecast with weekly variance analysis, prioritisation of payments, approach to lenders.

Months 2 to 4: Basis for the concept

Integrated plan of earnings, balance sheet and cash, documented schedule of one-off and special effects, clean three-year history – the data base for the opinion.

From month 4: Implementation and handover

Support for the measures, ongoing reporting to banks and shareholders, documentation for the successor.

Frequently asked questions

How quickly can someone start?

Suitable profiles usually within 24 hours. In a crisis this is where availability separates itself from promises.

Do you write the restructuring opinion under IDW S 6?

No. The opinion comes from the auditor or a specialised adviser. We provide the data base without which it cannot be written.

What comes first?

Making cash visible on a weekly basis. Without a robust 13-week forecast you can neither talk to banks nor assess the company's ability to continue.

What is the relationship to management?

The interim CFO runs the finance function and is accountable for it. The insolvency-law duties remain with the managing directors; the documentation they need is produced in the finance function.

What does it cost?

Day rates between EUR 1,400 and 2,500. In crisis mandates the weekly utilisation is usually higher than normal.

Further reading

All triggers for an interim CFO engagement at a glance: triggers overview.

Is this situation coming up for you?

Thirty minutes on the starting point, role and timeframe. We propose suitable profiles within 24 hours.
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