The ongoing liquidity squeeze, coupled with ever increasing bank risk compliance parameters and regulatory-driven programmes, are resulting in a longer and heightened lending review processes on both project and borrower prior to a decision as to whether to allow initial financing, re-financing or agree to restructuring of lending arrangements already in place.
In this complex scenario, financial institutions are systematically increasing information requests and requesting ever more detailed projections of the enterprise’s future performance both from a financial and operational standpoint in the medium to longer term horizon. In order to obtain an unbiased and independent evaluation financial institutions request companies to carry out independent business and operation reviews through third party professionals of their trust.
As an integral part of our portfolio of services, we deliver comprehensive business reviews for businesses that require value-added reviews from an independent standpoint and companies which are in the process of approaching financial institutions to raise fresh financing applications. Companies, related stakeholders and financial institutions use our knowledge and depth to deliver an independent business review to gain clarity on a company’s current position and the options for its future. During the conduct of any IBR, we keep in focus the objectives of the review and plan our work in order to address the key business issues which need to be addressed, Typically, these may include:
· Current trading and financial position
· Profit and cash flow forecasts
· Business and financial strategies
· Sensitivity analysis
· Management Systems
· Board and Corporate Governance
together with other value-added parameters of strategic interest, which may require to be highlighted and which would contribute to the well-being of the client as an integral part of the process.
We provide stakeholders with comprehensive understanding of the business under review through incorporating key facts, options analysis and sound recommendations in making their financial decisions through:
- The balance of risk versus return analysis, and
- Reviewing of the borrower’s business plan and projections, analysing robustness of model being proposed in relation to projections being proposed.