Interim management: the key to successfully overcoming an insolvency process

Spain has seen a significant increase in the number of insolvency proceedings and dissolutions during the first half of 2024, particularly among small companies. Factors such as rising interest rates, difficulties in repaying ICO loans taken out during the pandemic, and reduced profit margins have pushed many businesses into complex financial situations. In this context, companies facing insolvency proceedings or restructuring needs are finding Interim Management to be an effective and strategic solution for tackling these challenges.

Interim Management: a fast and specialized response

Interim Management is a business management tool characterized by the temporary incorporation of highly qualified executives into organizations that need to implement significant changes, such as a restructuring plan, an organizational transformation, or managing a bankruptcy process. Unlike traditional approaches, the interim manager brings experience and an external perspective that enables companies to implement quick and effective solutions, minimizing negative impact and maximizing recovery opportunities.

The role of Interim Management in bankruptcy proceedings

Bankruptcy proceedings, when not managed properly, can lead to the liquidation of the company. However, with a well-defined strategy, it is possible to restructure debt, renegotiate agreements with creditors, and reorganize the internal structure to return to viability. In this sense, Interim Management positions itself as a key solution, allowing companies to rely on a specialized executive to lead this process effectively.

The interim manager not only handles the day-to-day management of the bankruptcy process but also works on defining and executing a restructuring plan focused on the company's long-term sustainability. Additionally, their experience in similar situations provides a strategic vision that can be decisive in avoiding liquidation, thereby protecting the company's value and the interests of shareholders.

Interim Management and restructuring plans

In situations where companies require a deep restructuring, speed and precision in decision-making are crucial. Interim Management allows organizations to have an expert who, from day one, focuses on identifying critical areas for improvement and designing a restructuring plan that includes cost-saving measures, resource optimization, and debt renegotiation.

This type of intervention is particularly relevant for companies that have started a bankruptcy process, as the interim manager can manage the transition in an orderly manner, avoiding common mistakes that could worsen the financial situation. Moreover, Interim Management facilitates the implementation of necessary changes more quickly and effectively than a traditional executive recruitment process, which is essential in times of crisis.

Servitalent's experience in Interim Management

With over a decade of experience in the market, at Servitalent we have supported numerous companies in their restructuring processes and bankruptcy proceedings by providing highly qualified interim managers. Our ability to understand the specific needs of each organization and deliver the right talent has been key for many companies to overcome their challenges and regain profitability. In such a complex environment as today, Interim Management has established itself as an indispensable tool for effective restructuring and safeguarding business value.

Do you need help managing a bankruptcy process or restructuring your company?