Consistent interim management.

The recovery measures that are identified must be implemented consistently to resolve a company crisis successfully and sustainably. This may either take the form of immediate action to avoid a requirement to file for insolvency, or medium- and long-term measures under interim management with the aim of regaining profitability. Forms of immediate action may include:

• Selling holdings, assets or business units that are non-essential to operations
• Making reductions on the expenditure side
• Providing transparency by creating a liquidity plan and identifying liquidity needs
• Deferring and extending payment terms with suppliers
• Negotiating a short-term overdraft facility extension with lenders

If they are to be successfully implemented, recovery measures must satisfy certain basic requirements. These include a qualitative and quantitative description of each measure, the creation of a schedule or milestone-based plan and assignment of responsibility for various activities. In addition, compliance with the action plan must be monitored by setting up a steering committee and a project management office. Thanks to our experienced interim-management professionals, FalkenSteg can help to ensure that the recovery measures are consistently implemented, safeguarding the long-term success of your business.