The Lead Advisory process
From crisis to capital
Here too, the starting point is a careful, comprehensive analysis of the current situation including potential for improvement. This begins with the status of the liquidity and financial situation and includes assessing the internal structures and their performance through to determining the time frame available.
We take action here first, so that a standstill agreement can be reached with the principal banks that offers more time for the necessary restructuring measures or the sale of assets. The requirement for this is underlying trust in our work, which we can then do justice to if we lead and coordinate the necessary processes through our Lead Advisor and his or her team.
These renowned specialists take a two-pronged approach: on the one hand, they develop a cost reduction programme, while on the other hand, they come up with suggestions to increase revenue, generate extraordinary income from the sale of assets or other capital-raising measures.
There are often several approaches for reducing costs. These can range from individual measures such as reducing material or administration costs through to reducing complexity or fundamentally altering the business model. All of these measures serve to create an optimised structure in the long term, which provides extra leeway. This also makes the company more attractive again for capital investors.
Often, however, the long-term measures need supplementing with short-term capital procurement or – if the potential savings are too low – replacing. Here, besides other possibilities such as the acquisition of mezzanine capital, the focus is on the sale of assets, particularly property.
Properties that are no longer required can be completely sold off or properties that are still being used can be sold and then leased back again. The optimal implementation of such processes is one of Brüggemann GmbH’s key competencies.
For this, our experts assess the properties owned by the company with a view to all relevant factors. Location, condition, current usage and usage potential, funded status, etc. The result is a fair market valuation of the respective properties, on the basis of which we offer them for sale off market within our investor network. This guarantees a professional and discreet transaction.