Professional liquidity planning - the basis for successful restructuring

The reform of the German law on self-administration at the beginning of 2021 and the new Corporate Stabilization and Restructuring Act (StaRUG) explicitly refer to liquidity planning that looks ahead at least six or 24 months. In doing so, the legislator codified previous restructuring and reorganization practice, for which liquidity planning has always been a key instrument in overcoming corporate crises. In particular, this applies to:

Positive going-concern forecast: Professional liquidity planning is crucial for loan and subsidy approvals, deferral applications, follow-up financing or investment decisions.

Transparent corporate management and liability shielding: Professional liquidity planning makes it possible to define room for maneuver in advance, identify needs at short notice and implement appropriate measures in agreement with those affected.

Early risk detection: With the introduction of the StaRUG, the boards of legal entities were once again required to conduct ongoing early risk identification. The Institute of Public Auditors in Germany e. V. (IDW) recommends professional liquidity planning for the following two years.

Liquidity planning often only comes into the focus of entrepreneurs as a “bad weather model“, when the liquidity crisis has already occurred and the room for maneuver has long since been restricted. In addition, setting up reliable liquidity planning can tie up important capacities that are also required elsewhere in the fight against the crisis. It is therefore advisable to carry out ongoing liquidity planning at an early stage in order to be able to assess business decisions and market developments from a liquidity perspective in good time.

Restrukturierungspartner can support companies in the preparation of liquidity planning. While we always adapt our work to the individual requirements of the company, we consider the following three steps to be particularly important:
1. preparation of a liquidity planning tailored to the business model
2. rolling updating at defined intervals
3. controlling and reporting to the management and the financing group

Our expertise
Restrukturierungspartner have already prepared liquidity plans for numerous companies from various industries that meet the requirements of the IDW's Principles of Proper Planning and the BGH's case law. We develop the plans for or together with the entrepreneur and train the client's employees in order to build up a planning expertise.

We have compiled the most important information for you: Flyer professional liquidity planning and an exemplary planning process (available in German only).

Please feel free to contact us. We are happy to help.