Solvency Audit

TEBD – Solvency Audit – Final Report (English) NEW

2022 (1,34 MB)

Following the first EU Acquis Audit activity that took place in 2019, a second “service” has been developed in the project, the Solvency Audit activity.

The objective of this activity is to develop capacity within Turkish Chambers to offer a first line service to companies who face difficulties. This service is based on the existing Early Warning Mechanism developed for EU SMEs. The objective is to develop a diagnostic toolkit, which allows the Chamber and the company to evaluate its risk for insolvency or bankruptcy.

An Online training has been organised in December 2020 and January 2021 for 25 Turkish Chamber/Exchange Executives. The training has been delivered by the network experts of EUROCHAMBRES and TOBB.

The Solvency Audit activity is organised as Mentoring and Training Modus consisting of 5 different Modules:

• Module 1: Introduction to the methodology of Early Warning, understanding the concept, overview of the stepwise assistance, understanding the reasons behind opting for survival or closure of a company.
• Module 2: Assisting companies in distress – the initial contact with the company owner, screening and diagnosis, using the interview guideline, good practice in establishing an overview of the company and its problems
• Module 3: Assisting companies in distress 2 – action plan and follow-up, using the specialised tools of the toolkit correctly
  • Tool for creditor management (how to engage in the company’s negotiations with creditors to secure backing for the action plan)
  • Tool for navigating bankruptcy proceedings/insolvency checklist
  • Guidance/good practice for strategic choices in the Action Planning
• Module 4: Case-based training. Presentation of real company assistance cases, highlights of value-adding elements, discussion and reasoning of strategic choices made by the consultant.
• Module 5: After the Turkish consultants have their first assistance cases): troubleshooting, best practice, dilemmas, replies to specific queries.

The Online training sessions have been organised in 3 different sessions:

• Training 1: Module 1 & Module 2 together as a whole-day seminar on 19 November 2020
• Training 2: Module 3 & Module 4 together as a whole-day seminar on 4 December 2020
• Training 3: Module 5 as a whole-day seminar on 12 January 2021

Following these trainings, each Turkish Chamber/Exchange is committed to carry out 10 Solvency assistance cases (all Online) among different Turkish companies who face difficulties, offering assistance using the toolkit. The total target is therefore for 250 Turkish Companies to be supported. The TEBD Team, with the support of experts, are in contact with each Turkish Chamber/Exchange to complete the assistance cases.

Following the completion of these assistance cases, a general Solvency State Report is drafted by each Chamber/Exchange, providing a comprehensive overview of the potential for further developing these tools and making recommendations for further action.