In a company's lifecycle, three different types of crises can occur. None is more severe than a liquidity crisis, which can eventually lead to insolvency. Thus, when faced with a liquidity crisis, rapid restructuring is required.
Strategy
Transformation
Restructuring
Restructuring covers several time horizons and has three elements:
High pressure, requires immediate change
1-6 months
Mid-term measures which have to be launched fast
1 year
Set the ground for long-term opportunities
3-4 years
Financial restructuring levers
Balance sheet optimization
Active working capital management
Search for funding sources
Operational restructuring levers
Strategic restructuring levers
Restructuring has to be performed fast and with central coordination