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For a company which has breached or in danger of breaching its banking covenants, an independent business review (IBR) may be requested by stakeholders to ascertain the financial position of the company in order to formulate a robust plan to move forward with. IBRs are frequently initiated by banks, investors, and board members.

When liquidity issues threaten the future of a company, you need someone who is both experienced and impartial to provide a reliable perspective on your business’s operations and future performance. The company will be evaluated both on both a commercial and financial level to get a comprehensive overview of the business’s health. Once this process has been completed we will assist in devising a strategy to preserve value and mitigate creditor exposure.

In many ways an IBR can be seen as the catalyst for change albeit accelerated by impending signs of distress or underperformance. The IBR considers a company’s current strategy against the environmental, political, and financial landscape to see whether they hold up these associated stresses, as well as assessing the feasibility of these objectives being achievable based on these assumptions.

Working capital, liquidity, and outstanding liabilities will be interrogated, as well as consideration given to operational efficiency, customer profitability, management structures and competencies. Risk areas will be highlighted along with an appraisal of the business’s ability to remain resistant should these eventualities arise.

An IBR is as much about delivering options as it is about uncovering potential vulnerabilities. Following the IBR, available routes, along with the timescales necessitated, will be presented to stakeholders and our recommendations given. Depending on the extent of available liquidity, business operations may be able to continue while options are pondered; alternatively some situations may require an immediate decision to be reached.

We will lay out what is required to facilitate a turnaround should this be viable, and determine whether there is an appetite among stakeholders to do this. Depending on the future direction of the company we can work on implementing an interim or longer-term solution.

A truly tailored service, we will work closely alongside the stakeholders who initiated the IBR. Their chief concerns will be thoroughly investigated to bring both clarity and confidence to the table, allowing future decisions to be appropriately justified to fellow stakeholders. Our multi-disciplinary team allows us to provide ongoing support in regards to corporate finance, restructuring and turnaround, as well as finance options.

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