Restructuring Report in Accordance with IDW S6
Report on Corporate Restructuring with a Going Concern Forecast
„Knowledge that does not extend into the future is not knowledge“
Hans-Peter Dürr (1929-2014)
German physicist and recipient of the 1987 Alternative Nobel Prize
When a company falls into an economic crisis, the entire environment—which until then has often shown little interest in the company’s well-being—becomes nervous. Yet it is precisely in such critical situations that a clear head, courage, vision, and creativity are needed.
What is important is a swift and accurate assessment of whether there are fundamentally viable paths out of the crisis and whether one of these paths is highly likely to sustainably eliminate the causes of the crisis and their negative economic effects on the company.
Read moreTurnaround reports in accordance with IDW S6
The restructuring report in accordance with IDW S6 is an indispensable tool for companies facing financial difficulties. It provides a thorough analysis of the current situation and identifies concrete measures to enable sustainable restructuring.
But what exactly does such a report entail, and why is it so important?
Companies come under pressure for a variety of reasons. Market changes, strategic missteps, structural problems in the business model, or external shocks can lead to a crisis. In such situations, management, shareholders, banks, and other stakeholders need a solid basis for decision-making. A restructuring report provides this basis by systematically analyzing the economic starting point, identifying causes, and developing a realistic outlook for the future.
In doing so, we adhere to the recognized framework of the IDW S6 Standard.
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The IDW S6 Standard as an Established Framework
The IDW S6 report follows a clearly defined standard developed by the Institute of Public Auditors in Germany (IDW). Lenders, financiers, and investors regularly rely on this standard when assessing a company’s ability to continue as a going concern. Case law also frequently refers to IDW S6.
When is an IDW S6 report required?
An IDW S6 report is often prepared when a company is facing an economic crisis and needs a sound basis for restructuring measures.
In practice, such situations frequently arise in connection with financing negotiations or restructuring. Banks often require an IDW S6 restructuring report as a prerequisite for new credit lines or the continuation of existing financing. Investors and shareholders also need a solid basis for their decisions.
Another reason may be the threat of insolvency. When difficulties mount and solvency is at risk, management and shareholders must quickly gain clarity.
A structured report provides an overview of the financial situation and outlines realistic options for a turnaround.
Your Challenges
- As a CEO, have you been asked by your financing bank to submit a restructuring plan with a going-concern forecast in accordance with IDW S6?
- As a shareholder of a company facing an economic crisis, do you want to know whether it makes sense to provide additional capital?
- As a managing director, do you want to base the rescue of your company on a sound analysis so that the entire endeavor can be implemented successfully?
- As a managing director, do you want to explore options to save your company?
- As a managing director, do you want to convince stakeholders that your company’s economic environment is viable for restructuring?
- As a managing director or shareholder, do you need a robust expert opinion on the future viability of your financially struggling company?
- As a shareholder, do you need a basis for making a business decision regarding the continued financing of a company in crisis?
Our Services for Restructuring Plans
- We develop an action-oriented restructuring plan that includes a concrete action plan and a binding going-concern forecast in accordance with IDW S6
- We offer our expertise in the swift and accurate assessment of companies in crisis situations
- We integrate all measures into a comprehensive financial plan consisting of a budget, income statement, and balance sheet, resulting in a projected balance sheet with weekly liquidity planning
- Together with your management team, we develop a realistic and actionable set of measures designed to eliminate the root causes of the crisis
- We ruthlessly uncover the root causes of the crisis and put an end to whitewashing and cover-ups, which only lead to superficial solutions
- We identify both operational and strategic levers for restructuring
- We develop short-term liquidity-enhancing measures, which we clearly distinguish from medium- to long-term restructuring measures
- We integrate the company’s entire economic environment into the restructuring. Everyone should make a reasonable contribution to the restructuring
- Through transparent liquidity planning and a positive going-concern prognosis, we provide you with the assurance that you will not be held liable for a delayed filing for insolvency
Schedule a no-obligation consultation with our experts today!
What Sets Our Restructuring Plans Apart
Our restructuring plans not only identify the key opportunities and risks; they also result in concrete, practical implementation guidelines that are binding in nature. In addition to management, employees, and employee representatives, they take into account the expectations of your company’s entire business environment: commercial banks, credit insurers, surety providers, suppliers, service partners, customers, and the public. With our approach, we develop balanced restructuring concepts that have a high probability of implementation and thus the greatest chance of success.
Contact us now regarding restructuring reports in accordance with IDW S6
A crisis can strike any company. Now is the time for courage, vision, and determination to weather this storm. We guide you through this difficult process and develop your restructuring plan with a positive going-concern prognosis in accordance with IDW S6. Thanks to the technical expertise reflected in our plans, our restructuring concepts are highly accepted by commercial banks and form the foundation for successful restructuring projects.
Read moreFAQ on Restructuring Reports
What is an IDW S6 report?
An IDW S6 report is a structured restructuring report that complies with the requirements of Standard 6 of the Institute of Public Auditors in Germany (IDW). The report consists of a description of the company in question within its economic environment and an assessment of the stage of the crisis. It also contains an action-oriented restructuring plan that demonstrates the company’s viability.
What does a restructuring report include?
A restructuring report includes a description of the company’s activities, an analysis of the corporate crisis, a plan for restructuring the company, and a reliable going-concern forecast linked to specific measures.
What is the significance of the IDW S6 standard?
The IDW S6 standard defines the requirements for restructuring reports in Germany. It ensures a uniform structure and builds trust among banks, investors, and other stakeholders.
How long does it take to prepare a restructuring report?
The time required to prepare a restructuring report in accordance with IDW S6 depends on how quickly the company in question can provide the necessary documents and how well the client supports the process. The time required also depends on the size and complexity of the company in question. As a rule, preparation takes 4–8 weeks.
When is an IDW S6 restructuring report required?
An IDW S6 restructuring report is primarily prepared during corporate crises when banks, investors, or other stakeholders need a sound basis for deciding whether to continue the company’s operations.
What is the significance of the IDW S6 standard?
The IDW S6 standard defines the requirements for restructuring reports in Germany. It ensures a uniform structure and builds trust among banks, investors, and other stakeholders.
Who needs an IDW S6 report?
Typically, an IDW S6 report is required by companies facing existential financial difficulties. Commercial banks, investors, and other financiers often require such a report as the basis for their further financing decisions.
Can a restructuring report prevent insolvency?
A restructuring report can prevent insolvency if it enables the timely development and implementation of appropriate measures. However, this is contingent upon the company being fundamentally capable of restructuring.
What role does the going concern forecast play in the IDW S6 restructuring report?
The going concern prognosis is a central component of IDW S6 reports. It provides a reliable assessment of whether, under certain conditions, a company can be guided out of an economic crisis and then successfully continue operations.
Please contact us directly for answers to any further questions: We look forward to hearing from you.
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