An IBR is a financial review based on facts and figures that provides an objective view of a company.
A thorough, customised analysis provides key insights into the viability of the business as well as recommendations on how to restore operational performance and profitability.
Your company may require an IBR, if:
- Exceeding bank facility limits is a regular occurrence.
- Immediate sources of funding are exhausted.
- Suppliers’ credit terms are exceeded.
- Failing to produce key accounting and trading information when required.
- In the event that an independent assessment of the quality of borrowers’ financial projections and the feasibility of their business plans is required.
- There is concern that borrowers may take excessive risks, so that their actual operating cash flows may significantly deviate from projections and be insufficient to repay and service debt in a timely manner.
- There are difficulties assessing the risk of default by a borrower operating in an unfamiliar industry.
- There is a need to have loan terms and conditions that reliably hedge risks.
- Challenging trading / cash flow constraints.
- Potential covenant breach.
- Additional investment / exit plans being considered.
- Level and terms of future credit support have to be negotiated.
When it comes to rescuing a business, early identification, a timely response and the right selection of resources to support and implement strategic options is critical.
