In times of financial distress, banks often require an IDW S6 restructuring report from businesses. However, many business owners find themselves asking:
- Why is my bank suddenly requesting this report?
- What are the implications for my company?
Often, there is uncertainty about the specific requirements behind this request and how the report impacts financing decisions.
Our new guide provides a concise overview of:
- When banks require an IDW S6 restructuring report or an Independent Business Review (IBR).
- What content a report must include to be accepted.
- How it influences financing decisions.
- How businesses can best prepare.
Our goal: To equip business owners with the knowledge they need to negotiate with banks on equal footing.
IDW S6 Report vs. IBR – Key Differences for Business Owners
Banks may request either a comprehensive IDW S6 report or, in certain cases, an IBR (Independent Business Review).
IDW S6 Report:
- Comprehensive assessment of the company’s restructuring viability.
- In-depth analysis of market, financials, and crisis causes.
- Meets high legal and regulatory standards.
IBR – The More Compact Alternative:
- Faster evaluation of the current financial situation.
- Serves as an initial decision-making tool for banks.
- Often insufficient for securing new financing in advanced crisis situations.
TIP: Whether an IDW S6 report or an IBR is necessary depends on the company’s specific situation and is determined by the bank.
How Can Businesses Prepare?
Many companies find themselves in a situation where a bank requests an IDW S6 restructuring report without clear guidance on the next steps.
Three Key Steps for a Smooth Process:
- Clarify the Bank’s Requirements > Speak with your bank to understand the specific expectations, key areas of focus, and required content.
- Select a Qualified and Independent Advisor > The right advisor should fit both professionally and personally – a trust-based collaboration is key to success.
- Organize Financial Reports & Documentation > A well-structured and complete set of documents significantly streamlines the process. No need to worry: If essential information is missing, your advisor will help compile and present the necessary reports.
Did you know? According to the Institute of Public Auditors in Germany (IDW), a restructuring report must meet specific requirements to be accepted by banks.
Conclusion: Why an IDW S6 Report Is Critical for Businesses
An IDW S6 restructuring report can be the deciding factor between a successful turnaround and failed financing negotiations.
- Without an approved report, securing financing is often impossible.
- A realistic restructuring strategy strengthens your negotiating position.
Download our comprehensive guide in German here:
>> IDW S6-Gutachten & IBR – Orientierungshilfe für Unternehmer
Further Resources:
- Institute of Public Auditors (IDW) – IDW S6 Standard
- Federal Cour of Justice – Rulings on Restructuring Feasibilty
Have Questions or Need Support?
We are happy to assist you in a confidential, non-obligatory consultation.
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Dr. Jens Zimmermann, Managing Partner
Stefan Mairiedl, Senior Expert
Nicole Zimmermann, Partner
Ralph Erhard, Advisory Board Member