How an interim CFO stabilized liquidity and earningsRestructuring of an educational institution
How did the economic crisis at the Bildungswerk come about?
A long-established business training organization with a turnover of around € 55 million and around 1,000 employees came under increasing economic pressure. The core business incurred persistent losses over several years, which ultimately led to an acute liquidity crisis .
In this situation , Dipl.-Kfm. Frank Wedekind took over responsibility for the CFO and COO division with up to 600 employees as interim CFO . The aim of the mandate was to secure liquidity in the short term and at the same time restore the company’s economic stability.
What role did the interim CFO play in the restructuring process?
The interim CFO took over the operational and strategic management of the finance and operations division after the previous incumbent was replaced.
His central task was to create financial transparency, initiate restructuring measures and realign the company financially.
At the same time, he acted as the driver of the restructuring and as an interface to banks, the Supervisory Board and other stakeholders. This role enabled the financial stabilization of the company to be implemented in a structured and targeted manner.
What measures were implemented as part of the restructuring?
The restructuring project ran for 13 months and included several key measures to stabilize and realign the company.
A key component was the preparation of an Independent Business Review (IBR) in collaboration with a cooperation partner. In addition, the interim CFO took over the management and support of the restructuring as part of a project management office (PMO).
Other measures included:
- Creation of economic transparency, as projects were previously miscalculated and therefore implemented at a loss
- Development of consistent and integrated corporate and financial planning
- Introduction of professional liquidity planning
- Development of a new business area for long-term stabilization
These steps formed the basis for a sustainable economic realignment.
How has financial transparency been improved within the company?
A key challenge was that many projects were miscalculated. This resulted in structural losses that were not sufficiently visible in the company beforehand.
The interim CFO therefore introduced new controlling and planning structures, including
- integrated corporate planning
- Systematic liquidity planning
- Optimized project calculations
These measures enabled realistic economic management of projects and business areas for the first time. At the same time, the company’s controlling function was comprehensively modernized.
What results were achieved through the restructuring?
The restructuring measures led to several decisive successes for the company.
The Independent Business Review (IBR) was fully supported by both the banks and the Supervisory Board. This made it possible to provide a bridging and refinancing loan to secure liquidity.
The following results were also achieved:
- Realignment of corporate management with a focus on profitability
- Introduction of integrated corporate and liquidity planning
- Stabilization of the earnings situation through first successfully implemented restructuring measures
- Complete renewal of the controlling department, including personnel and structural reorganization
This has enabled the Bildungswerk to be financially stabilized and reorganized.
FAQFrequently asked questions
What does an interim CFO do in a corporate crisis?
An interim CFO temporarily takes over the management of the finance department, particularly in crisis situations or restructurings. Their tasks include ensuring liquidity, introducing transparent financial structures and developing and implementing restructuring measures.
What is an Independent Business Review (IBR)?
An Independent Business Review (IBR) is an independent analysis of a company’s economic situation. Banks and investors often use this analysis as a basis for financing decisions, particularly in the case of restructuring or reorganization.
Why is integrated corporate and liquidity planning important?
Integrated planning combines revenue planning, financial planning and liquidity planning. This enables companies to recognize financial risks at an early stage and make well-founded strategic decisions.
