Business viability assessment

Family Law services at RSM

Business viability assessment


Family Law

Family lawyer advice at RSM

FAMILY LAW
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Family Lawyer advice

RSM have a range of business restructuring and turnaround services to assist secured lenders when their clients are facing financial difficulties.

Consider a business viability assessment and solvency review- which can determine whether the business will survive

A professional assessment of the financial performance and position of a business will determine its viability which, in a business sense, is the ability to survive.

A business is viable where either:

  • it is returning a profit that is sufficient to provide a return to the business owner while also meeting its commitments to business creditors
  • it has sufficient cash resources to sustain itself through a period when it is not returning a profit

We have been assessing the viability of all types of business across Australia for many years. We have the skills to assess the financial health of any business.

Business restructuring and turnaround
Identify issues early through a business viability assessment.

A business viability assessment will provide a comprehensive business analysis covering such key performance indicators as:

  • gross profit margin – trend and adequacy
  • EBITDA (earnings before interest, taxes, depreciation and amortisation)
  • working capital position – adequacy to meet debts as due
  • debtor analysis – aging and provisions
  • creditor analysis – terms and trends
  • forecasts – cash flow, financial performance and position 

An unviable business may lead to personal liability of company directors and business proprietors for debts incurred by the business which cannot be paid by the business. This includes taxation debts such as pay as you go withholding tax and superannuation guarantee charges.

Business failures rarely happen overnight. There are almost always indicators of underlying problems which can be addressed if identified early through a business viability assessment. 

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