Section 1 StaRUG requires managing directors of limited liability companies to continuously monitor developments that may endanger the company’s continued existence, to take appropriate countermeasures, and to inform the competent supervisory bodies. This obligation applies irrespective of legal form and, in principle, regardless of the size of the company. IDW S 16 further specifies these statutory minimum requirements. In particular, it calls for a structured early crisis detection system with clearly defined responsibilities, a systematic risk and monitoring process, and continuous integrated business planning as a key management instrument.

At ECKERT ASSURANCE, we help our clients implement these requirements in a practical and effective manner - from risk identification and assessment to integrated planning and the design of processes, reporting lines, and documentation. In this way, a statutory duty to detect crises at an early stage is transformed into an effective early warning and management system for your company.

Many companies have no or inadequate integrated corporate planning, consisting of a coherent balance sheet, income statement and cash flow statement. However, at the first signs of a corporate it is time to obtain a detailed overview of the financial situation and future financial development. Managing a company by account balance is fraught with liability and is not an option.

We support you in the further development or creation of your integrated corporate planning and supplement it with key figures relevant to your company. Together, we develop structures that do not require extensive software and are suitable for everyday use. We put you in a position to recognize risk situations, develop solutions and, if necessary, initiate countermeasures in good time.

We prepare restructuring reports in accordance with the IDW S6 standard as a solid basis for financing and business decisions. The focus is on analyzing the company’s financial situation, identifying the causes of the crisis, and developing a consistent restructuring concept with viable measures. This includes integrated income, balance sheet, and liquidity planning, as well as assessments of debt service capacity and financing requirements. A structured action plan ensures transparency and controllability. Finally, we provide an objective assessment of your company’s ability to restructure and continue as a going concern.

As part of our fairness opinions “in the narrower sense”, we comment on the financial appropriateness of transaction prices in the context of entrepreneurial initiatives. 

In the context of our fairness opinions “in the broader sense”, we comment in a very similar way on definable financial issues. Examples include the retrospective valuation of company (shares) or the contractual fulfillment of performance obligations from a letter of comfort.

The implementation of insolvency proceedings under self-administration as so-called “protective shield proceedings” is regularly an option that is particularly suitable for the restructuring of a company. The prerequisite for such proceedings is a certificate, which must be issued by a qualified expert. In this context, we comment on the question of whether the requirements set out in section 270d InsO for the ordering of such protective shield proceedings are met.

With our experience and critical approach, we support you in your purchasing process and, in teams led by auditors and tax advisors, carry out buy-side financial due diligence in particular. We know the levers of a company valuation and are not satisfied with superficial explanations. We conduct a well-founded, independent analysis of the assets, finances, and earnings of your target company, providing you with a reliable basis for your investment and transaction decisions.