Restructuring in the service sector: putting calculation in order, retaining customers
Service companies sell working time. Whether facility management, cleaning, caretaking or everyday assistance: wages account for most of the costs, and they rise with the minimum wage and collective pay agreements. Prices, by contrast, are often fixed for years under framework contracts.
This creates a gap that can go unnoticed for a long time. Orders are running, employees are fully occupied, and yet the earnings are not enough. If staff absences, a lost major customer or arrears with social security contributions are added, things quickly become tight, because wages fall due every month.
The Worstbrock-Group supports service companies in crisis, in restructuring proceedings and in realignment. The aim is to continue the business, preserve jobs and bring customers and employees through the crisis.
Immediate help and crisis management
- Analysis of liquidity and contribution margin per order and customer
- Liquidity planning including wage, social security and tax due dates
- Talks with banks, clients and social security institutions
- Review of the duty to file for insolvency and preparation of an application for Eigenverwaltung (debtor-in-possession management under Sections 270 et seq. of the German Insolvency Code)
Restructuring and Eigenverwaltung
- Restructuring concept in accordance with IDW S 6 (the German standard for restructuring concepts issued by the Institute of Public Auditors) for banks and creditors
- Restructuring proceedings in Eigenverwaltung with orders still running
- Insolvenzgeld (insolvency benefit, a statutory German scheme that secures wages) to relieve wage costs in the preliminary proceedings
- Post-calculation and renegotiation of framework contracts and price adjustment clauses
Strategic realignment
- Restructuring under StaRUG (the German Act on the Stabilisation and Restructuring Framework for Businesses, in force since 2021) when illiquidity is imminent
- Integrated financial planning covering personnel deployment, utilisation and price development
- Concentrating on services and customers with sustainable earnings
- Support with takeover, business succession or sale
In a service company everything depends on the people who do the work at the customer’s site. For this reason, clear information for employees and clients is part of a restructuring from the start. We make sure that both know where they stand and that the business keeps running.
Do the sums before the coming wage increase consumes your liquidity.
We support service companies in stabilisation, restructuring and realignment.
