Our range of services covers also Independent Business Reviews (IBRs) which are carried out by the order of investors, target companies or some third parties. IBR refers to a process where the current situation of a company is determined from the financial perspective. In addition, the reliability of future estimates is usually under scrutiny. The aim is to give the investor an independent assessment whether the target company has enough liquid assets to be able to continue the businesses normally. The target company can as well be the one to order an IBR if it wants to provide an investor with valuable additional information unprompted.
The IBR can in all situations be limited already in the assignment letter so that it can at the best possible way produce such information that is needed in each situation for decision-making purposes. Limited Independent Business Review (LIBR) requires that the parties decide limitations to be applied in the analysis. LIBR is therefore faster and more cost-effective than the traditional IBR, which often represents a more holistic view.
The following components, for example, can be included in an Independent Business Review:
- determination of the current financial situation
- estimation of the sufficiency of liquid assets
- estimation of future perspectives
- evaluation of the business or restructuring plan
- analysis on market and competitors
- evaluation of management’s perception on the financial situation and the future
- evaluation of risks and opportunities
- estimation of the sufficiency of working capital
Carrying out a successful IBR requires always that the target company is cooperative in order to get access to the information needed. As IBR represents an engagement to perform agreed-upon procedures regarding financial information, the objective is to report the factual findings as agreed but no assurance is expressed.
For more information, please contact:
Urpo Pirilä, +358 400 539 374, [email protected]