Despite the German economy's cautious optimism about the economy: a turnaround in interest rates, the development of energy prices, sluggish sales and enormous inflation rates have left their mark on many German companies. For structural reasons, some sectors were more affected, while other sectors were less affected. For some companies it is now time to act immediately and initiate the necessary restructuring immediately.
Baker Tilly services for borrowers and lenders in challenging situations
Tax advisors, lawyers, restructuring advisors and financing specialists work closely together for your way out of the crisis: With our integrated Baker Tilly DELTA (Debt Equity Legal Tax Advisory) approach, we support you in challenging situations.
Insufficient cash flow in companies, groups or borrowers is in most cases an unmistakable sign that the business requires comprehensive restructuring. In challenging times, to protect your company, you must simultaneously optimize both the financing structure and your company’s organization and processes. In this special situation, we will respond promptly to your needs and, above all, will support you throughout the entire process with all aspects that are crucial for you.
Whether you are a managing director, executive or supervisory board member or CFO – with our integrated consulting approach DELTA (Debt Equity Legal Tax Advisory), we develop a comprehensive solution for your way out of the crisis together with you – regardless of whether you are a borrower or an investor.
Reliable and fast analysis of your imminent challenges
In order to plan, initiate and implement the necessary steps in a distress, we analyze for you very precisely how the situation and the
insufficient cash flow occurred. The reasons that can lead to financing problems are manifold: they range from rising interest rates and extraordinary operational challenges, for example in the supply chain, to declining sales or falling investment values, to back taxes or payment defaults due to insolvent customers. With our DELTA approach, we define causes and solutions for you quickly, reliably and, above all, in a way that is easy to understand.
Insufficient cash flow might lead to insolvency and bankruptcy
Insufficient cash flow may quickly lead to a breach of financial covenant requirements in existing financing agreements (financial covenant breach). In the case of SPV financing, an insufficient (re)valuation of the financed properties, projects or other plans may have the same effect as insufficient cash flow.
At an advanced stage of the financial crisis, the company may no longer be able to pay interest and/or to arrange for loan payments/bond repayments in due time. Ultimately, both scenarios may either require the contribution of additional equity or – if such equity cannot be procured – may result in the relevant financing becoming due and payable. In such case, liquidity is jeopardized, and the company might be forced to file for insolvency.
Full service of tax advisors, lawyers, restructuring advisors and financing specialists
Depending on the financing debtor’s, industries or owner’s specifications and the type of the relevant financing, our tax advisors, lawyers, restructuring advisors and financing specialists will compile an integrated set of solutions perfectly tailored to your individual needs to maintain your company’s, investments or financing’s value. In this context, we will consider all aspects of financing, corporate and restructuring law as well as tax structuring and operational restructuring to form a solid basis for our further approach.
Our Debt Advisory and Transactions Competence Centers, together with our industry experts specializing in automotive, retail, real estate and financial services, complete our service package in order to ensure that we are fully prepared for all restructuring options.
Our services: Your way out of the crisis with a lead partner with restructuring experience
- For our clients, all disciplines converge at one central Baker Tilly contact: a lead partner who is well-versed in restructuring issues and ensures a holistic approach with various relevant services.
- Legal advice for investors and borrowers in restructuring proceedings, the restructuring of corporate financings as well as real estate secured financings
- Legal advice to domestic and foreign investors’ lenders and borrowers on the sale and acquisition of non-performing loans (NPL)
- Support for investors and borrowers in the sale of loan portfolios, including data preparation and vendor DD
- Integrated tax consulting and tax structuring
- Many years of experience in judicial and extrajudicial restructurings of shareholdings, financings and businesses
- Proven industry expertise
Solutions for businesses, borrowers and PE investors
We support your company and you as a PE investor in (re-)establishing financing requirements, liquidity management and access to
relevant capital markets. We prepare going concern forecasts, develop alternative financing models and effective strategies to avoid, hedge and explain personal liability risks.
Additional solutions for investors: from nonperforming loans (NPL) to exit scenarios
In addition, we develop optimal solutions for non-performing loans (NPL) for capital providers, provide support in securing investments and in fundraising, enforcements, guarantees and sureties, as well as strategies for developing suitable exit scenarios.
Strategy, structuring, optimization
Baker Tilly DELTA: that is your team of experienced lawyers, tax advisors and restructuring specialists, who will jointly develop the solution to every crisis with a holistic approach: from the development of the strategy to the restructuring concept and the optimization of the financing to the concrete implementation.
For borrowers and investors: tax consultants, lawyers, restructuring consultants and financing experts work close together for your way out of the crisis.
Download all information about the integrated approach Baker Tilly DELTA (Debt Equity Legal Tax Advisory) now as a PDF brochure.