Control over processes and living standards

Two things need to be controlled constantly: processes, and attained living standards.

Therefore, in order to achieve specific financial objectives, all necessary events and trends have to be monitored and readjusted constantly. Another factor necessary to attain certain living standards is to focus on any changeable criteria that might affect them.

The factors we pay attention to – here are some of the situations we work with (3 examples):
 

Control – Example 1

Case description

An entrepreneur is involved in restructuring his company. Different specialists, including external consultants, have also been involved in this process. In this way, lawyers have devised intricate contracts. Tax consultants have weighed the physical consequences and identified the financial effects. Marketing experts have designed new logistics and sales processes. Advertising agencies have tasked their graphic designers to capture the new image visually. The stages of the upcoming transformation have been sketched out and the responsible executives assigned in each case. The entrepreneur knows what he wants and where he's going.
 

Problem

Now comes the implementation phase: many aspects of the plans prove to be either totally unworkable or at the first attempt. External reactions to the plan turn out to the other than expected. In some places, unwanted situations arise, proving initial predictions wrong. Individuals and individual attitudes or approaches that had been relied on turn out to be absent – for whatever reason. Promises are not kept. The situation is fluid and changes all the time. Delays and breakdowns occur.
 

Solution

This is no nightmare scenario – just the normal framework for any restructuring process, even after the best preparations have been made. It is totally critical in this context just that the individual processes concerned are followed through diligently and carefully. Ideally, an outside person or agency, someone or some entity that has not directly participated in the theoretical planning stage, should do this. In that case, they will be free of preconceived ideas and enjoy a fresh perspective on the project, accordingly.

So, this is how we help our clients: we work out solutions that can be rapidly qualified as appropriate and at the same time, we fine tune all the necessary coordination activities; and we do it all in close cooperation with the individuals responsible in each case. To the full extent necessary, we will immediately amend our list of planned further actions. In the crucial, implementation phase, you will find that we work tirelessly side-by-side with you, to ensure that these changes are pushed through in practice, as required. The commercial objective has to be pursued with only minor deviations from plan, if any.

to above

Control – Example 2

Case description

Assets are frequently kept separate from each other – with good reason. This separation may have arisen due to various factors. Yet, if the starting position of the entire project has been thoroughly thought through, it makes no difference whether this separation of assets just developed or was deliberately created due to parameters envisaged at the start; whether it relates to objects, processes or individuals, whether it was implemented based on idealized projections or whether a planned task relies on the capabilities of family members.

The starting position of our sample factual situation is both transparent and extremely simple: business assets in the form of stocks in various corporations and private assets in the form of real estate are in family ownership. Dad is the sole owner of business assets. Mom and their children are joint owners of the private assets, and the purpose of the real estate is to supply the family's long-term needs.

The business situation of one of the corporations is worsening. The stockholders have a liability to pay additional sums of money. In fact, this liability is actually called in and they have to pay up. While Dad can initially meet these liabilities out of saved dividends without any problems, the additional payments required turn out to be inadequate and the company's situation now worsens dramatically. Further additional payments are called in in a bid to rescue whatever can be rescued. In spite of this, Dad’s liquid assets have been used up in the meantime. His assets are tied up in stocks of the other, flourishing corporation.
 

Problem

The problem here is not enough liquidity. The first solution that comes to mind would to just take out a loan. But a loan will only ever be handed out against security, and it is extremely difficult to obtain loans whose lenders would accept the pledging of corporate assets as security. In contrast, it is easy to pledge real estate as security, so Dad seeks that kind of help and his family gives it.
 

Solution

This is just one more everyday event. It’s both a common situation and one where it is all too easy to make over-hasty decisions. And in this case, the main issue is not the amount of any funds involved, but one of risks; and in fact, the risks here did not even exist at the time the corporation's business situation started to deteriorate.

The case facts described are by no means pure fantasy: the risk they illustrate constitute a hidden hazard for all businesses. In specific, equivalent scenarios, our job is to maintain a constant watch over the assets situation. Our function is to pay attention to family assets, to ensure that they are protected from uncontrolled access by family members in ways that transfer them from private control to the business arena. We make sure that any family assets supplied are used exclusively for the purpose intended. This is so that the requirements and instructions regarding their preservation for future generations can be met. And even if times are hard, we will always manage to find a solution.

to above

Control – Example 3

Case description and problem

Assets are not just about pure purchasing power. They can also consist of legal rights or other entitlements. They can even consist of nothing more than advantageous situations.

Further, it is also necessary to consider the effects of any financial commit­ments.

Times are constantly changing. Naturally, this means that factors that were compatible with each other once could easily become incompatible in the future.
 

Importance

Legal rights might be extremely valuable or else become that way at a specific point in time. This could happen regardless of the situations they relate to. The same applies to legal obligations: the inherent value, or respective advantages or disadvantages that they may come to represent, must be reviewed in terms of their fundamental content and usefulness on a regular basis.
 

Solution

We recommend according appropriate importance to this type of living standards assessment, including paying attention to any possible changes that may have occurred, at all times. We always use special care when monitoring and advising clients on such issues. We always clarify what your requirements are in relation to employee welfare obligations or relevant, reciprocal factors. We will, if necessary, raise doubts and make appropriate suggestions. We can act as mediators and also put forward proposals ourselves; proposals that will lead to viable arrangements for stakeholders – to the advantage of our clients, of course.

to above

.