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About this book

Technological progress and globalization have completely changed the overall conditions and rules of entrepreneurial engagement. The speed of this modern high performance economy has accelerated, competition is fiercer than ever, and the battles are no longer fought in the domestic or intra-European arena, but on a global level. To keep up with their rivals and increase their productivity, bu- nesses must be able to efficiently manage their processes and structures. However, strategies and business models must be developed simultaneously to set the stage for a successful and sustainable course of expansion. Driven by these forces, the management and focus of restructuring measures has also changed in recent years: in the past, the primary objective was to implement solutions to improve the operational end of the business – and, ultimately, to cut costs. The strategic revamping of the company is closely linked to this type of operational restructuring. Since then, however, another financial dimension has been added to this restructuring approach. In other words, the restructuring pr- ess – and the respective demands it imposes on stakeholders, such as managers, financial partners, and consultants – has evolved substantially from pure cost cutting measures (often associated with "rightsizing") to consulting on the brink of insolvency (planned insolvency method) and growth-oriented financial restr- turing.

Table of Contents


The Success Factors of Restructuring in Germany — New Challenges for Corporate Financing


Innovative Crisis Management Concepts — An Up-to-Date Status Evaluation

Without Abstract
Michael Blatz, Sascha Haghani

Corporate Restructuring in Germany — The Economy Remains Tense, but Restructuring Offers Definite Opportunities

5 Conclusions and Outlook
Comprehensive and consistent restructuring can play an important role in securing a stable and healthy financial foundation for the company and in ensuring sustainable results and liquidity. It thus clears the way for new strategic options. The effects are positive for all stakeholders; the loan value remains secure for banks and credit insurers, and the related credit rating can be improved. Customers and suppliers will obviously be more interested in continuing their business relations with the company given that they once again consider it a strong and valuable strategic partner. Restructuring offers investors attractive investment opportunities with long-term growth perspectives based on a solid and healthy financial foundation.
Given this background, we are certain that the German restructuring environment will — after the end of “Germany Inc.” and the insolvency hype — offer many active approaches that will put companies on a more sustainable long-term footing.
Bernd Brunke, Stephan Foerschle, Sascha Haghani, Florian Huber, Nils von Kuhlwein, Björn Waldow

Recapitalization — New Corporate Financing Options

4 Conclusions and Outlook
Several cases involving the successful recapitalization of companies through innovative concepts attract the attention of other medium-sized companies. We have observed a definitive increase in the interest of these clients in alternatives to conventional loans. Especially after having gone through an operational reorganization, an increasing number of medium-sized businesses in Germany are eager to reinvent their corporate financing. This is just the first wave!
Sascha Haghani, Maik Piehler

From Crisis to Value Increase: How Companies Can Attain High Profits During a Restructuring Phase

Without Abstract
Karsten Lafrenz

The Financial Restructuring of Medium-Sized Companies

Without Abstract
Robert Simon

Changes in Due Diligence Requirements

Without Abstract
Nils von Kuhlwein

The Results of the Latest Surveys Performed by Roland Berger Strategy Consultants


German-European Restructuring Survey 2004/05 — Results and Recommended Courses of Action

Without Abstract
Max Falckenberg, Ivo-Kai Kuhnt

Distressed Debt in Germany from the Banks’ Point of View

Without Abstract
Nils von Kuhlwein, Michael Richthammer

Practical Financial Restructuring Examples — Case Studies


Financial Restructuring of a Pharmaceutical Company

Without Abstract
Karl-J. Kraus, Ralf Moldenhauer

Reorganization and Capital Market — Growth Financing Shores Up the Restructuring Process

4 Conclusions and Outlook
Fendox Domestic gained a lot of ground in just a year and a half of traditional restructuring, and changed considerably. The increasingly competitive environment in a shrinking market made this restructuring process very tough in some areas. Mistakes made in the past could not be completely corrected within this period. Experience has shown that the time required to correct errors frequently is just as long as the time these errors were allowed to wreak havoc.
Most companies who are in these kinds of situations find it difficult to maintain or even expand the required financial flexibility for their continued development. After the successful traditional restructuring, the Fendox Group was in a position to substantially reduce financial burdens from the past and strengthen its financial circle. The respective leeway for continued growth in the profitable international markets could therefore be ensured and the planned domestic market consolidation could be initiated.
Some of the problems that have developed in crisis companies over a long period of time can be corrected only by implementing comprehensive and consistent restructuring processes that prepare the affected company for its return to a successful development. The Fendox Group achieved this thanks to an integral restructuring concept comprising its strategic reorientation, structural and operational measures, as well as an integrated recapitalization concept.
Sascha Haghani, Maik Piehler

Restructuring and Recapitalization of the HD Co. Group

Without Abstract
Michael Blatz, Christian Paul, Julian zu Putlitz

Return to Growth — The Wind AG Restructuring and Recapitalization Process

Without Abstract
Uwe Johnen, Jürgen Schäfer

The Utilization of Divestments in KML’s Group Restructuring Process

Without Abstract
Gerd Sievers


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