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In various aspects, the pre-examination phase corresponds
to the classical M & A process. But it differs with respect to the
amount of operative detail required and the intended result: drawing up
of the restructuring plan.
The pre-examination aims at collecting first information about the potential
holding companies. This is about answering basic questions such as:
| • |
Is this an established company in need
of restructuring? |
| • |
What are the causes of the crisis? |
| • |
How are the company's products or services
regarded in the market? |
| • |
What is the current turnover, profitability
and liquidity situation? |
| • |
Are there first restructuring approaches? |
| • |
Are shareholders prepared to relinquish
control of the company to CMP? |
If these and further questions can be answered positively, the
insights are further detailed in an assessment of potential and the basic
points of a restructuring concept are defined. The results of the analysis
are compiled in a business plan from which the expected capital requirements
as well as a possible transaction structure are being derived. After coordination
with all stakeholders involved, the basic points are put down in a letter
of intent and serve as the basis for further negotiations.
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