The IBR and Pre-Lending reviews provide stakeholders with key insights into the viability of a business and provide clear and concise recommendations in order to restore operational and financial performance or develop an exit and/or closure strategy.
The IBR and pre-lending reviews cover Financial and Operational reviews which are prepared based on facts and information provided by the organisation and its management being carefully reviewed and supported with insightful discussions and interviews with management and other stakeholders which could include bankers, financiers, customers, suppliers, employees etc.
The outcome of the reviews should provide an objective and independent view of the business in order to determine whether the business is viable or if alternative positive or negative actions are required.
Having had operational and advisory experience we have developed industry expertise in a number of key sectors, which assists us in assessing and developing effective, strategic and practical solutions for clients and their major stakeholders.
Financiers or investors would likely require an IBR in order to:
- Consider providing new or additional funding or equity (pre-lends or capital raising);
- Determine whether existing facilities or funding will be sufficient or become exhausted based on projected budgets and forecasts;
- Understand why banking and other facilities or suppliers credit terms are not being complied with;
- Determine the reasons management are not able to produce reliable accounting and trading information;
- Consider, understand and assess the veracity of the organisation’s financial results, cash forecasts, business plans, future financial and operational assumptions, feasibility and ability to service debt;
- Understand the reasons the borrower may have breached monetary or other covenants and is not providing information to assist in assessment of its viability;
- Non-compliance or breaches of statutory obligations. Our advisers have undertaken many of these reviews on behalf of lenders, shareholders and other stakeholders across different industry segments.
- In order to assist businesses and the key stakeholders, the early identification of the drivers and inhibitors of the business and management is essential.
In order to address and achieve positive and meaningful outcomes, timely responses and actions together with the support of quality resources is critical to implement strategic options.