As a longstanding insolvency practice we have a wealth of knowledge and experience covering a wide range of sectors and business types, which we can use to help directors navigate their way through challenging times.
Where a company is experiencing some form of financial difficulty or its future prospects are uncertain we can provide support to the directors via a formal Independent Business Review (IBR).
The types of situation where an IBR could be helpful include:
- The company is experiencing long term cash flow issues
- An inability to keep up with repayments to creditors and suppliers
- There is a threat of legal action from creditors
- The directors believe the company may be insolvent
An IBR is an assessment of a company’s current and projected financial situation and its purpose is to help directors better understand the issues, and what options they have for dealing with them. The review is delivered to directors via a detailed written report and can be followed up with ongoing advice and support until the situation is resolved.
What happens in an IBR?
In order to successfully complete an IBR we would need as much financial and trading information as possible. This should include the last annual accounts, recent trading accounts, bank statements, lists of creditors, details of current financing (including asset financing and equipment leasing) and a breakdown of monthly costs.
This information would be assessed by us and discussed with directors where further clarity is required. All relevant scenarios and options will then be considered, often supported by financial projections. Options and recommendations typically include:
- Funding or refinancing options
- Proposed actions for improving profitability and cash flow
- Options for dealing with creditors
- Formal restructuring options
The outcome of the IBR should be that directors can make informed decisions about the best way forward, with recommendations and a detailed set of actions they can follow. We can remain on hand to assist with the implementation of these, especially where a formal restructuring or insolvency procedure is required.