Independent Business Review
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Independent Business Review (IBR)
What is an Independent Business Review?
When a business is showing signs of stress, an investor or lender may request an Independent Business Review (IBR) to gain assurance on the current status of an enterprise and its prospects before continuing with or increasing their support. Directors and trustees may also request an IBR as part of their fiduciary duties. An IBR takes the form of a review by a party unconnected to the enterprise of its strategy, business plan, operating environment, extent of distress, key risks and financial outlook.
How do we do it?
We engage with the party requesting the review to understand their concerns and with the enterprise’s management and owners to understand the business environment and causes of stress. The review will then consider the appropriateness of the enterprise’s business plan in the context of the current operating environment.
We then perform the following:
Detailed analysis of the balance sheet
Detailed analysis of the income statement
Review of the business model
Review of key contracts
Assessment of management skills and experience
Review of major risks including legal disputes
Deep dive into cash flow forecasts
Engaged has considerable experience in assisting distressed companies and a network of trusted technical skills across industries. We have resources that are professionally qualified in the areas of finance, management, operations, and law coupled with many years of experience at the coalface affording us an appreciation of what business owners experience during different economic cycles. We provide clarity to investors, lenders, directors, and trustees where there is uncertainty or concerns around an enterprise’s financial outlook.
Is this the right solution for you?
An independent business review is normally requested by the borrower at the behest of lenders, investors or persons with a fiduciary duty and is therefore generally billed to the borrower. However, the borrowing enterprise can often negotiate a reduction in the cost of finance or an increase or extension in facilities by providing greater clarity of the risks involved. There is a significant benefit to all stakeholders when the health of an enterprise has been confirmed by an independent party.
Give us a call for a no-obligation high-level confidential discussion on how best to proceed.