Expert-assessed (IDW S6) recovery blueprints


Comprehensive company analysis that meets German auditor standards.

A consistent plan of action is an absolute necessity for firms that find themselves in crisis situations. But a recovery action plan is not the only solution required to overcome the crisis; businesses will also need a way to communicate a concise overview of their situation – the recovery blueprint. In particular, the company’s stakeholders – first and foremost, its equity investors and lenders – will want to know which recovery measures are required to restore the company to profitability and how much capital is needed to achieve this goal. In addition, a far-reaching series of legal requirements must be met to reduce liability risks in the event of a company crisis.

Recovery blueprints (Sanierungskonzepte) and recovery reports (Sanierungsgutachten) are created in a variety of circumstances in accordance with German Institute of Public Auditors standards (IDW S6) and German Federal Court of Justice (BGH) rulings. Reasons for creating these documents include:

  • Informing a funding decision for equity investors and lenders during the crisis
  • Spreading confidence to creditors who consent to a part-payment agreement during the company crisis
  • Protecting company management or board members in connection with their liability under criminal (e.g. German Penal Code, Section 283 onwards) or civil law (German Limited Liability Companies Act, Section 64)
  • Safeguarding the rescue exemption provided by Section 39(4) of the German Insolvency Statute
  • Providing a basis for negotiations with stakeholders
  • Providing a basis for the procurement of public subsidies

These recovery blueprints or reports are typically created according to a standardised process:

A recovery blueprint that includes an expert opinion is called a recovery report. To ensure that these reports take account of the legal requirements, it must meet certain content guidelines. For instance, it must contain basic information about the company’s current business situation and legal position, analysis of the causes of the crisis and the stage to which it has progressed, an explanation of the vision for the company’s future, a description of the action plan to overcome the crisis and avert the risk of insolvency; and a fully integrated business plan.

Our services

  • Assistance with the creation of a recovery blueprint in accordance with the requirements of Germany’s highest court (BGH)
  • Confirmation that recovery is viable from the perspective of an objective third party
  • If the attempted recovery method fails (e.g. due to a lack of support from investors), FalkenSteg will show you additional recovery options

How you stand to benefit

  • Benefit from our in-depth expertise in creating recovery blueprints
  • Rely on the transparency we provide, allowing you to make well-informed decisions
  • Receive comprehensive support as you work towards recovery

Projects

Beluga Spielwaren

Continuation
through sale to an investor

Restructuring concept
Liquidity planning
Consumer goods
Oct 2018 - Aug 2019

Siebert & Möller

Continuation
through sale to an investor

Asset Deal

Machinery
Aug 2018 - Oct 2018

Contact partners

Sebastian Wilde

Partner
  • T: +49 211 54 76 63 12
  • M: +49 173 92 39 453
  • sebastian.wilde@falkensteg.com

Wolfram Lenzen

Partner
  • T: +49 211 54 76 63 18
  • M: +49 173 72 56 554
  • wolfram.lenzen@falkensteg.com

Further Restructuring services