If restructuring capital is made available on the basis of a restructuring report with a positive going concern forecast, the turnaround can begin. Do not underestimate the restructuring task. Particularly in a tense crisis situation, your management team’s view of the key levers of a turnaround may be obscured. Experience shows that their performance will drop noticeably at the very time you need them. In addition, you will have to implement restructuring measures that are not part of your usual repertoire alongside your day-to-day business. You are entering a phase of upheaval that will place a considerable additional burden on you.
Don’t underestimate how entrenched you and your leadership team are in patterns of thinking and behavior. Too often, executives are trapped in economic crisis situations because they perceive their environment as an insurmountable obstacle, but are unable to adapt to this environment themselves. They construct reality for themselves and feel helpless and powerless in the face of it. Yet reality is always a result of one’s own relationship with the environment. And the economic situation results from an appropriate handling of the possibilities that this relationship allows. Especially in crisis situations, everything, including contracts, must be critically questioned. The solution space must be expanded and necessary measures must really be implemented, even if they are outside the usual scheme. This kind of ability to act is not to be expected from executives under crisis stress.
Therefore, get professional support in time. Often, support from an experienced restructuring consultant with an unbiased view is already expected by the investors. If this is not the case, get professional support anyway. Benefit from a creative dialog with your restructuring consultant.
In principle, there is much to be said for the IDW S6 assessor taking on the role of restructuring advisor. He has already dealt extensively with your company and also already knows the environment of your company, in particular the capital providers.