Business Reviews and reorganization reports

Investors need a comprehensive analysis of a business to make a sound risk assessment. Is it possible to turnaround a business experiencing financial difficulties? What conclusions can we draw from over-extended companies in crisis? As an independent expert, the business recovery services team at PwC analyses business reviews and gives opinions on financial restructuring and insolvency audits.

PwC's business reviews help businesses and their investors to gain clarity on the issues faced by a business. PwC has developed the corporate health check, an efficient product which is particularly suitable for middle market companies facing crisis.

In growth prospectuses PwC analyses three core issues:

  • Is the growth strategy clearly defined, supported by sufficient analysis and broken down into detailed individual steps?
  • Is the growth financing secured, are there sufficient liquidity reserves to cover potential shortfalls and has the right mix of financing been selected?
  • Is the business ready for growth, or in other words are the structures, processes and business culture focused on achieving a successful growth strategy?

During a restructuring audit, PwC's specialists establish whether it is possible to restructure the company out of the crisis. They also assess the appropriateness and viability of existing restructuring concepts, present and future solvency and over-indebtedness of the business.

In its capacity as an assessor, PwC acts as an independent third party, enabling our experts to give reliable objective opinions and ensuring that all parties involved have the confidence they need to work together.

Over-indebtedness is grounds for implementing insolvency proceedings under Section 19 of the German Insolvency Statute. When assessing a potential situation of over-indebtedness, PwC's specialists take a two-stage approach. Initially the survival capacity of the business is assessed, i.e. the status of the business as a going concern.

At the second stage assets are compared with the business's liabilities on a given balance sheet date (over-indebtedness status). These assessments are based on the most up-to-date pronouncements and opinions of the auditing profession, particularly the IDW (German Institute of Auditors) as well as appropriate case law, particularly from the German Federal Court of Justice.

This independent and expert approach allows PwC to:

  • Ensure transparency and clarity in crisis situations
  • Develop robust solutions that are acceptable for all parties
  • Inspire trust by assisting in the implementation of and progress reporting on restructuring programmes.

Contact us

Thomas Steinberger

Thomas Steinberger

Partner, Deals: Leader Business Recovery Services & Automobilindustrie

Tel: +49 89 5790-6443

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