Explain IDW S6 and its core components.
A core Restructuring interview question — asked in analyst and associate interviews across IB, PE, and the Big 4.
THE SHORT ANSWER
IDW S6 is the German standard for restructuring opinions. Core components: (1) Company description, (2) Crisis cause analysis, (3) Going concern prognosis (12-month liquidity), (4) Restructuring concept (operational + financial measures), (5) Integrated business plan (3–5 year P&L, B/S, CF), (6) Implementation plan with milestones, (7) Feasibility assessment. The key conclusion: is the company sanierungsfaehig (capable of being restructured) and is the plan durchfuehrbar (feasible)?
WHAT INTERVIEWERS LISTEN FOR
- ✓German restructuring opinion standard
- ✓Crisis cause analysis
- ✓Going concern prognosis
- ✓Restructuring concept
- ✓Feasibility assessment
COMMON MISTAKES
- ✗Confuses IDW S6 with US standards
- ✗Omits liquidity prognosis
- ✗Ignores feasibility conclusion
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