In some circumstances, either the total financial liabilities of a company are too large, or the profile of the liabilities is so inappropriately structured, that the company will not be able to meet them as they fall due.
Typically this only delays the inevitable. Often the only solution that will ensure the survival of the company is wholesale financial restructuring. This will require a comprehensive, detailed and achievable business plan. Once a realistic business plan has been agreed with management a restructuring proposal needs to be developed which should represent a better solution to each of the stakenholders than the alternative. We work with management teams to assist in the development of business plans, restructuring plans, and bank negotiations to perform a comprehensive financial restructuring.
Our IBR service provides lenders with a clear and objective view of the borrower’s current and projected debt service capacity.
When we perform a company business review on behalf of the management or shareholders of a business.
The analysis is usually used when a business is in a position of financial distress to identify how readily the business can meet its financial obligations and to recommend real courses of action which will assist it in doing so. It is a very practical exercise where the financial consequences of various actions will be examined and discussed. Management teams can therefore use it as a blueprint for ensuring that they take the most appropriate course of action to avoid an event of default.
Companies can often go into financial distress despite being profitable due to a lack of free cash.
This allows us to identify intra month peak requirements, vulnerabilities and potential upsides e.g. reducing the inventory days to generate asdditional cash. We use this knowledge to provide lenders with an independent view on whether the borrower has adequate liquidity to continue operating normally and thus enable them to decide on how to manage their financial liabilities.