When things are not running smoothly and business is no longer business as usual, underperforming companies on the verve of distress must act quickly and decisively to avoid dire complications.
Businesses in today’s highly competitive market may succumb to issues that have an effect on cash flow and profitability. Management teams, finance professionals and lenders need to read the signs of financial stress and operational underperformance and take prompt and effective actions.
Broadly, our service offerings are aimed either directly towards owners and management of the company or towards lenders and financial backers.
For example, services aimed at the company could lie within cash and working capital management to establish how the company plans short-term financing and working capital to settle accounts, absorb bad receivables and optimise its stocks or receivables. Alternatively, we could focus on operational restructuring, to identify optimisation opportunities in business processes to increase efficiency, or, financial restructuring, where we assist in reorganising the company’s financial position when it is underperforming or in a stressed situation.
Towards lenders or financial backers, our services aim to provide an independent and unbiased background understanding (e.g. by preparing an IBR) of the situations in which the individual corporate lenders can find themselves – be it underperformance by the borrowing company, application for extensions or changes to existing financing arrangements or breach or danger of breach of loan covenants. We assist in improving the understanding of the situation and the reasons why the company encountered difficulties, thereby increasing confidence and provide recommendations on how to stabilise the situation and implement a robust solution.
Independent Business Review (IBR)
An IBR is a financial review based on facts and figures that provides an unbiased view on a company’s forecasts. A deep and thorough analysis will develop or refine a structured plan with strategic options for the different stakeholders. An IBR will be tailored to very specific situations in order to provide strong practical support in implementing approaches. IBRs may be requested by commercial banks holding secured debt, management, private equity firms, investment banks, bondholders and any creditor that holds an interest in a company.