Professional Services
Professional Services
The professional services sector is in the midst of one of the most challenging and uncertain periods in its history. Increasingly cost conscious clients, reduction in spend from key government providers and a trend towards outsourcing and market consolidation, are severely testing many organisations traditional remuneration structure. This has led many firms to actively undertake cost reduction in order to survive.
In many firms, there is now a real disconnect between the financial objectives of the partners and the financial solvency of the business. Many partners are saddled with onerous personal liabilities and are profoundly affected by any downturn in business, which has major implications for their own personal financial survival. A restructuring of the practice will often also entail significant changes to a partner’s personal circumstances.
In these situations, radical solutions are required to get the business back on track while retaining and motivating key individuals.
Our Approach
Any insolvency and restructuring option needs to be carefully considered in view not only of the corporate structure and underlying direct affect on the principals, but also the likely attitude of the regulatory and professional bodies. There is no ‘one size fits all’ and having to balance a complex regulatory framework and managing key client relationships in order to prevent client loss is a challenge. There are numerous options available and we will tailor a solution that is a better fit for the practice itself and the creditors.
Working Capital and Liquidity
The lack of physical assets makes it, at best, decidedly challenging for professional services businesses to secure bank funding. But cash is key to the survival of any business. We have experience in seeking out the best possible deals and negotiating with lenders on behalf of professionals, alongside assisting with debt collection and conversion of work in progress to ensure a healthy cash flow.
Specialist Experience
Aside from assisting distressed professional practices we have a strong relationship with many of the leading global law firms. Our forensic experts provide law firms with litigation support services such as e-discovery, asset tracking and due diligence to help unravel complex business crime and build a strong case for their clients. In the realm of corporate investigations where detecting, investigating and preventing multimillion pound crimes requires speed and flexibility, we are able to deploy a team of experts almost immediately.
In situations where either greed or financial pressures have created a breeding ground for fraudulent activity, we assist lenders and the appropriate regulatory bodies in identifying practitioners who have played a role in facilitating fraudulent activities, and in recovering losses.
Related Case Studies
Manufacturing and Engineering
MBL Akustikgeräte GmbH & Co. KG.: Investor solution
MBL Akustikgeräte has been producing audio devices of uncompromising quality for decades. It manufactures all loudspeakers and electronics at its own production facility near Berlin. MBL’s Radialstrahler loudspeakers have an outstanding reputation among audiophiles and music aficionados worldwide. The company is a leading brand in high-end audio. The business filed for insolvency due to liquidity problems. PLUTA restructuring expert Mr Frank Brachwitz was appointed insolvency administrator.
The business remained fully operational after filing for insolvency, and a structured M&A process was initiated. Attorney Mr Frank Brachwitz worked with MBL management to search for an investor for the company. This process was conducted with an international focus, and Mr Brachwitz was able to bring it to a successful conclusion following detailed contractual negotiations.
The insolvency administrator achieved a solution four months after the proceedings had been opened. MBL’s operations were sold to Chow Tai Seng, a Chinese luxury goods group, by way of an asset deal. The Berlin location and the Eberswalde production facility have been maintained. All 50 or so employees have been kept on by the new owner. The creditors can expect a 100% recovery rate.
Manufacturing and Engineering
Lilium GmbH and Lilium Aerospace GmbH: Selling Patent Portfolio
Founded near Munich in 2015, Lilium was developing an electric vertical take-off and landing (eVTOL) aircraft – the Lilium Jet. The start-up company went public on the US technology exchange NASDAQ in 2021. It had around 1,200 employees working on production setup and battery technologies. Overall, it invested some 1.5 billion euros in bringing the aircraft to market, but ran into financial difficulties. Lilium had to file for insolvency in 2024. Mr Ivo-Meinert Willrodt from PLUTA is the insolvency administrator for Lilium GmbH and Lilium Aerospace GmbH. These were involved in self-administration insolvency proceedings from October 2024 and then in regular insolvency proceedings since March 2025 after the sale of the company had fallen through. Mr Wolfgang Bernhardt is insolvency administrator for the holding company Lilium N.V.
The German electric aviation pioneer owned the intellectual property rights. Lilium’s patent portfolio included over 300 patents covering innovations in high-voltage systems, battery management, advanced aircraft design, flight controls, electric engines, propellers and ducted fans for eVTOL aircraft. Mr Ivo-Meinert Willrodt conducted a complex bidding process for the sale of the patent portfolio as part of the insolvency proceedings.
Insolvency administrator Mr Ivo-Meinert Willrodt sold the patents and registered intellectual property rights to Archer Aviation, a US-listed company. The purchase price is in the low to mid double-digit million euro range. After lengthy negotiations in a complex transaction process, Archer prevailed in the bidding. The sale to Archer offers the highest level of transaction and execution certainty. The creditors will also benefit from this outcome.
Manufacturing and Engineering
MBL Akustikgeräte GmbH & Co. KG.: Investor solution
MBL Akustikgeräte has been producing audio devices of uncompromising quality for decades. It manufactures all loudspeakers and electronics at its own production facility near Berlin. MBL’s Radialstrahler loudspeakers have an outstanding reputation among audiophiles and music aficionados worldwide. The company is a leading brand in high-end audio. The business filed for insolvency due to liquidity problems. PLUTA restructuring expert Mr Frank Brachwitz was appointed insolvency administrator.
The business remained fully operational after filing for insolvency, and a structured M&A process was initiated. Attorney Mr Frank Brachwitz worked with MBL management to search for an investor for the company. This process was conducted with an international focus, and Mr Brachwitz was able to bring it to a successful conclusion following detailed contractual negotiations.
The insolvency administrator achieved a solution four months after the proceedings had been opened. MBL’s operations were sold to Chow Tai Seng, a Chinese luxury goods group, by way of an asset deal. The Berlin location and the Eberswalde production facility have been maintained. All 50 or so employees have been kept on by the new owner. The creditors can expect a 100% recovery rate.
Aviation
Lilium GmbH and Lilium Aerospace GmbH: Selling Patent Portfolio
Founded near Munich in 2015, Lilium was developing an electric vertical take-off and landing (eVTOL) aircraft – the Lilium Jet. The start-up company went public on the US technology exchange NASDAQ in 2021. It had around 1,200 employees working on production setup and battery technologies. Overall, it invested some 1.5 billion euros in bringing the aircraft to market, but ran into financial difficulties. Lilium had to file for insolvency in 2024. Mr Ivo-Meinert Willrodt from PLUTA is the insolvency administrator for Lilium GmbH and Lilium Aerospace GmbH. These were involved in self-administration insolvency proceedings from October 2024 and then in regular insolvency proceedings since March 2025 after the sale of the company had fallen through. Mr Wolfgang Bernhardt is insolvency administrator for the holding company Lilium N.V.
The German electric aviation pioneer owned the intellectual property rights. Lilium’s patent portfolio included over 300 patents covering innovations in high-voltage systems, battery management, advanced aircraft design, flight controls, electric engines, propellers and ducted fans for eVTOL aircraft. Mr Ivo-Meinert Willrodt conducted a complex bidding process for the sale of the patent portfolio as part of the insolvency proceedings.
Insolvency administrator Mr Ivo-Meinert Willrodt sold the patents and registered intellectual property rights to Archer Aviation, a US-listed company. The purchase price is in the low to mid double-digit million euro range. After lengthy negotiations in a complex transaction process, Archer prevailed in the bidding. The sale to Archer offers the highest level of transaction and execution certainty. The creditors will also benefit from this outcome.
Our Other Industry Experience