Redevelopment (economy)

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In the economy , restructuring is the collective term for all measures within a corporate crisis to restore existence-sustaining profits. The concept of restructuring combines all business , tax and legal measures to overcome problems. In view of the uniqueness and complexity of the individual situation, there cannot be any patent recipes for corporate restructuring. Rehabilitation and rehabilitation management can be understood as a core competence of consulting .

Restructuring is understood to mean the entirety of the measures for the recovery of a company. It should only be attempted if there is a reasonable chance of success.

Definition of terms

A distinction to the turnaround can be made according to the crisis phase in which the company is at the beginning of these measures: If the crisis is already acute, then it is a restructuring, otherwise it is called a turnaround.

Also, restructuring is often used interchangeably. A restructuring or reorganization of a company does not require a crisis, but can also take place within the framework of the "usual" strategic management in order to make the company more profitable in the long term.

Reasons for renovation

There must be a corporate crisis that can affect the very existence of a company in many forms. If losses are generated permanently and the equity is attacked, there is a risk of over-indebtedness . This is just as much a reason for insolvency as insolvency , if due liabilities can essentially no longer be serviced. Then the actual causes of loss must be determined, which must be eliminated by various types of renovation. The aim of restructuring is therefore regularly the permanent elimination of losses and the return to capital-preserving profits.

Types of renovation

Portfolio restructuring

Focus on the strategy:

  • Optimizing the portfolio from the point of view of value growth (risk, growth, return)
  • Concentration on core business areas through disinvestment, closure, possibly spin-out or outsourcing
  • Consistent control of the strategic business areas (SGF) through financial, performance and market goals.

Organizational redevelopment

Disposition of the group architecture:

  • Optimization of the organizational structure
  • Optimization of the process organization in dialogue with the planning of the organizational structure
  • Optimization of systems, interfaces and socio-technical infrastructures.

Financial reorganization

  • Securing, generating and distributing value
  • Securing and developing sources of finance and capital, adding new capital through equity financing (capital increase, sale of unneeded goods) or debt financing ( debt relief , deferment of payment, new loans ) or pure restructuring (offsetting reserves against the annual deficit . The nominal capital does not change as a result ).

Behavioral rehabilitation

Behavioral focus:

  • Optimization of the leadership culture (power and opportunity control)
  • Improvement of behavior patterns and routines through incentive or sanction systems as well as symbolic leadership.

Remedial measures

If internal remedial measures are insufficient, external measures must be taken. Frequently used restructuring measures are carried out at the affected company in cooperation with its creditors , in particular credit institutions and suppliers . This could contribute to rehabilitation by their demands hours , roll over or - as a radical measure - out as part of a debt relief without. It is also advisable to appoint an external restructuring advisor.

Other subdivisions

The types of renovation can also be classified differently, for example in the narrower and broader sense:

  • In the case of a restructuring in the narrower sense , only financial measures are carried out to quickly eliminate or avert over-indebtedness and / or insolvency .
  • In the case of a restructuring in the broader sense , however, an attempt is made to put the ailing company on a solid basis through financial and performance-related measures in order to enable its survival in the long term.

literature

  • Michael Harz, Heinz-Günter Hub, Eberhard Schlarb: Rehabilitation Management. Leading companies out of the crisis . 3. Edition. Düsseldorf 2006, ISBN 3-87881-184-5 .
  • Hermann Lauer: Conditions Management. Design and enforce payment terms optimally . ISBN 3-87881-124-1 .
  • Ines Manzel, Thorsten Manzel: Ways out of the corporate crisis . ISBN 3-86556-033-4 .
  • Bernhard Schellberg: restructuring management. Berlin 2017 . 2nd Edition. Erich Schmidt, ISBN 978-3-503-17134-7 .
  • Stefan Hohberger, Hellmut Damlachi: restructuring in medium- sized companies . Expansive to restrictive corporate restructuring, restructuring reports and insolvency plan . 2nd Edition. Marburg 2010, ISBN 978-3-8288-2190-3 .

Individual evidence

  1. ↑ a b See Dirk Meusel (2009): Turnaround management: The role of financial partners and investors , p. 10.

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