There is often insufficient up-to-date and predictive insight. Yet action should be taken on the basis of what is available. To regain stakeholder trust, insights will preferably have to be validated or jointly prepared by an independent expert. This requires creativity, experience, frame of reference and decisiveness in addition to knowledge.
An objective, external analysis of the current starting position of the various business disciplines helps in a corporate restructuring process. The analysis includes sensible measures and forward-looking plans and their impact on operations, liquidity and financing.
The analysis is focused on aspects such as:
A good management control system provides information to assess the company's performance against its strategic goals. This is also in the interest of all stakeholders. Clear KPIs such as result/activity/customer and a ‘rolling forecast’ are part of this.
Those directly involved and the company are going through a difficult and challenging period. All key business disciplines are affected. Ultimately, it is all about people. For instance, the management may be (partly) no longer forward-looking. Or there are disputes/conflicts between shareholders, between shareholders and the board or due to an internal battle over succession. Due to undesirable circumstances, management may also be (temporarily) gone.
The analyses and pragmatic recommendations can be used directly for restructuring: improving returns by halting losses and exploiting identified opportunities and chances.
