Requirements for turnaround concepts

Johannes Klein

2008

As the current financial crisis shows, crises don't just hit in times of recession – they can also hit when the economy is doing well.

For today's companies, dealing with crises is part of normal business. Restructuring and turnaround are viewed as core tasks of business management. Yet there is no fixed standard for what a turnaround concept should consist of, no basic principle enshrined in law.

Johannes Klein presents a systematic analysis of the existing legal and business requirements for turnaround concepts and examines how the two are interrelated. From a solid theoretical basis, he turns the spotlight on the concrete business requirements for turnaround concepts, such as the guideline issued by the Treuhand agency (the agency responsible for privatizing former East German state-owned enterprises), the stipulations of the Legal Committee of the Institute of German Auditors (IDW FAR 1/91) and the turnaround approach employed by Roland Berger Strategy Consultants.

Klein identifies a number of general trends and outlines the specific future requirements for turnaround concepts. Furthermore he develops a practical guideline for designing turnaround concepts in the form of a recommended action plan.