FTI-Andersch going concern forecasts...
- as solvency forecasts, establish whether a company’s future earnings and liquidity situation will be sufficient to service the debts and liabilities due over the course of the planning period;
- comprise neutral, technically sophisticated, clearly structured reports that provide you with legal certainty as to whether grounds for insolvency exist;
- elucidate — where your company’s future as a going concern is determined to be relatively secure — the range of options available to it going forward.
Areas of application
FTI-Andersch going concern forecasts...
- are necessary whenever a company falls into financial difficulties or a corporation established that its assets may no longer be sufficient to cover its liabilities;
- fulfill all legal requirements pertaining to the examination of solvency and overindebtedness.
Core benefits
- Many years of experience:
FTI-Andersch has over 20 years of experience as an independent insolvency assessor.
- A strong reputation:
the reports that we compile in an auditing capacity provide company managements with the requisite official documentation, enabling them to proceed with legal certainty.
- Practice-based approaches:
we focus on the analyses that really matter and can thus quickly deliver reliable results.
FTI-Andersch prepares and examines going concern forecasts in accordance with the corresponding insolvency law provisions and current rulings. For this, we compile a solvency forecast on the basis of integrated company planning. The forecast tends to include both the current and the following financial year, and are broken down to individual months.
Its core objective is to detect liquidity gaps that could jeopardize the company’s future as a going concern. Compiling the forecast involves assessing the company’s overall financial development across the forecast period (based on the liquidity situation as of a fixed date) and presenting the results in a professional, clearly structured report. These results enable the respective company management to act with legal certainty.
If the going concern forecast is positive, then no overindebtedness exists, irrespective of the equity reported in the balance sheet.
An FTI-Andersch going concern forecast contains the following:
- integrated company planning (comprising projected profit and loss, projected balance sheets and projected cash flow) based on a comprehensive analysis of the company in its market
- an overall evaluation of the company’s projected solvency during the period under review
Support for a large medium-sized company (plant construction) with numerous international subsidiaries and complex project financing structures; demonstration of the company’s viability via a positive going concern forecast
Result: Legal certainty was established for the various bodies within the affiliated companies. This served to preserve the transnational cash pool and reduce the corporation’s financing costs.
Learn more about working with FTI-Andersch:
Success stories