Restructuring Update, Q4/2023 issue: Number of insolvencies on the rise

High inflation and continuing high interest rates with shrinking economic output: risk management in companies is facing special challenges. What can be done to increase resilience - and what can be done in the worst-case scenario to emerge stronger from the crisis? Our quarterly Restructuring Update offers solutions to questions relating to turnarounds, reorganisation, insolvency and distressed M&A. Our authors categorise new developments and point out options for action. You will find these five focal points in the fourth quarter 2023 issue:

Following the historic low in corporate insolvencies in Germany in 2021, a trend reversal is becoming apparent. Automotive suppliers, the construction industry and the retail sector are particularly affected. There has also been a noticeable increase in major insolvencies. We present the latest figures and show which aspects of restructuring should be considered at an early stage.

Shortage of skilled staff, outpatient care, digitalisation, demographic change, structural change: the hospital sector is in a state of upheaval, the number of clinics is falling and liquidity burdens are high. The German government has approved a shortened payment period for health insurance claims against hospitals to support liquidity. But will the regulation remain in place in the future? We explain the background.

The retail sector remains under pressure: digitalisation has permanently changed consumer behaviour. Rising costs due to inflation and declining consumer behaviour are exacerbating the situation. We explain why transparency of cost structures is now essential for market participants.

Not only raw materials such as oil, silver or wheat can be considered "commodities", but also interchangeable and highly standardised products with low customer loyalty. Examples include household batteries or car tyres. Product-immanent competitive advantages are hardly recognisable; the lowest possible price is the main purchase criterion. How can companies position themselves in such a specialised market to ensure sustainable success? We explain.

Every company planning calculation is based on management decisions. The individual assumptions for the respective planning parameters should be based on sound data as well as many years of experience and sector-specific expertise. Using examples from the property sector, we explain why the role of budgeting as a basis for stakeholder decision-making is more important than ever in times of crisis.

Download the KPMG Restructing Update, Ausgabe Q4/2023  now and benefit from the insights of our restructuring experts.