Crisis as an opportunity

Securing the company through a turnaround

Successfully setting the course for a turnaround

Have you been noticing for some time now that your company's overall situation is deteriorating and that there are weaknesses in the company as a whole or deficits in individual areas? The liquidity situation has tightened and the requirements set by capital providers are becoming ever stricter? Then contact our dhpg restructuring experts. With our many years of experience and our extensive knowledge of the industry, we specifically address the causes of a crisis, develop solutions and help you to achieve your objectives on a sustainable footing.

What you can expect from us

Why dhpg?

Putting our heart and soul into it

Turnaround means mastering special situations. We step in to assist you with our knowledge and experience. Our goal is to get a grip the very special challenges facing a company in cooperation with all stakeholders. That is what we do. With cause-oriented turnaround concepts, transparent implementation and resolute controlling.

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Efficient mode of work

Especially in crisis situations, time is a scarce resource. We offer a targeted, efficient way of working that promises rapid progress and guides your company through the turnaround process.

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Complete range of services

Thanks to dhpg's holistic consulting approach, not only operational and financial areas are assessed - the crisis itself is also analysed from a corporate law and tax law perspective. This is the only way to develop a strategy for a successful and, above all, sustainable turnaround.

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Business experience

Our expertise in quickly identifying the causes of crisis situations and practical experience from a large number of turnaround projects we have assisted in the area of midsized companies, as well as in preparing expert opinions and restructuring reports for banks, creditors and courts of law in line with requirements are particularly valuable for you here.

Your contact persons for turnaround management

Would you like to arrange a personal meeting to discuss matters? We will be happy to arrange a non-binding appointment with you so that we can get to know each other. We look forward to your call or e-mail and to meeting you.

To the contact persons

FAQ - Questions on the topic of turnaround management

What is meant by a turnaround and turnaround consulting?

In terms of substance, a turnaround describes the process and the associated structural change of a company to emerge from a crisis threatening its viability to a situation in which performance secures its survival. 

In turnaround consulting by dhpg's restructuring experts, this process is first established and then implemented in a targeted manner individually tailored to the crisis situation and crisis phase in which the respective company finds itself. In all this, we always have one goal in mind: to put your company back on track and make it a success.

How can I tell whether external turnaround expertise makes good sense for my company? What are the essential aspects that show me which phase of a crisis my company is in?

Crisis situations of a company can be broken down into six phases. The further along the crisis is, the closer to the brink of insolvency and the more difficult the turnaround.

  • The first crisis phase is called a stakeholder crisis. It is characterised by conflicts and impasses between stakeholders (such as employees, suppliers, customers or creditors) or within the management. These are often accompanied by a departure from corporate values and the mission statement as well as mounting demoralisation among employees.
  • This is followed by a strategy crisis, which manifests itself in the loss of market share and competitiveness. The causes are usually to be found in having bet on the wrong technology and market trends, bad investments or an inadequate innovation policy. The first two phases of a crisis are difficult to recognise and it takes time to implement countermeasures.
  • Stagnating or declining demand for what were previously successful product groups strongly indicates a product crisis or sales crisis. Underutilisation of capacities, falling margins and an increase in capital commitments are the consequences. At this point at the latest, the involvement of professional turnaround advisors is warranted and a stabilisation of the business model is necessary. An existential crisis situation can be averted through the consistent implementation of suitable restructuring measures. The further developed the crisis, the greater the restructuring effort.
  • A crisis in profitability is the fourth stage. Typical characteristics of this stage include declining profit or rising losses due to significant price declines for the main sales drivers or cost hikes. Equity is gradually eaten up over time and over-indebtedness may result. If a company is in this phase, there is an urgent need for action. Prompt, efficient restructuring is at this point a must. 
  • The fifth phase is a liquidity crisis and is the last phase before actual insolvency. A company in crisis runs into difficulties effecting payment and its creditworthiness dissipates. The viability of the company is all of a sudden at stake. 
  • The final phase of a company crisis process is actual insolvency. This occurs when there are no effective measures, or only ultimately futile measures, that can be taken to counteract the crisis. In particular, possible liability risks need to be carefully evaluated at this point. If the company is indeed insolvent, an insolvency petition must be filed. The company is namely at risk of a third-party application for insolvency at this stage. 

It is worth mentioning that these phases in a crisis do not necessarily have to occur in successive order. In other words, the phases can also occur simultaneously or even be skipped or omitted.

Which areas of my company are affected by the turnaround?

A holistic view of a company facing a crisis is of particular importance for a successful turnaround and to be able to surmount the crisis. It is important to pinpoint the causes that trigger the crisis and to apply the right levers to remedy the situation. To do this, all areas along the value chain need to be reviewed.

What options do I have, apart from a turnaround, to lead my company out of the crisis?

As a business owner, you have a comprehensive toolbox at your disposal to restructure your company and thus lead it out of the crisis. In doing so, not only classic corporate reorganisation and corporate restructuring along the lines of a turnaround, as described above, should be considered. If there is a severe liquidity crisis, another option is restructuring based on the new restructuring framework (StaRUG), which, in addition to the possibility of allowing the company to stay in operation, also encompasses measures which can help the company to eventually become profitable again. 
Even if out-of-court restructuring is no longer possible because the company has become insolvent, there are still possibilities for restructuring because the "insolvency" option is in the meantime no longer the "nightmare" that it used to be. 

So-called insolvency in self-administration offers a wide latitude for shareholders or managing directors to save the company on their own. They always remain capable of acting and in charge of the company, but are subject to the supervision of a court-appointed administrator. Insolvency proceedings (in self-administration) must be well prepared, however, and above all initiated at an early stage. Thanks to the many years of experience that dhpg's insolvency administrators possess in the conduct of insolvency proceedings, we can successfully prepare your company for this phase and support it throughout the process.

How long does the turnaround process usually take and can the costs that will be incurred be estimated?

The duration of a restructuring process and the costs incurred for it depend on the company crisis and to what stage it has developed. Costs are usually based on the phase of the crisis in which the company currently finds itself and on the problem areas to be rectified that are at the roots of the company's situation. This question can therefore not be answered in general terms. However, an initial assessment can be made on the basis of a quick check of your company. Feel free to contact us and we will be glad to advise you personally and individually.

What are the advantages of external turnaround management?

The involvement of professional restructuring advisors and reorganisation consultants offers wide-reaching advantages. In crisis situations, action usually has to be taken quickly and efficiently, which is why a high level of experience and knowledge of the particular industry are virtually indispensable. In addition, there is considerable pressure to take action, which is difficult for a management tied up in day-to-day business to cope with. We offer know-how and the capacity to restructure your company, including implementation of unpopular measures with a potential for conflict. We are ideally positioned to deal with all problem areas related to restructuring and help out wherever necessary.

A successful turnaround

Due to the increasing complexity of the competitive environment and phenomena like digital transformation, disruption or increasingly blurry boundary lines between business sectors, it is imperative that companies react to new challenges in order to avoid crisis situations and liability risks that threaten their viability. Crisis symptoms often creep in insidiously before they manifest themselves and can be measured in company-specific metrics. Decisive in any successful turnaround is a timely recognition of the need for action and a correct assessment of the crisis phase. Restructuring options are also contingent upon this.

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