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What is an Independent Business Review (IBR) or Options Review (OR)?
An Independent Business Review (IBR) or Options Review (OR) is an assessment of a company’s current and projected financial situation. It can be relatively light touch or quite detailed, depending on the perceived need and the cost involved. It is often requested by a company’s lender but can also be useful for any stakeholder.
As a lender, why do I need a review for my client?
Lenders with clients who regularly exceed their agreed facilities, request limit increases or capital repayment holidays may benefit from a review. The exact scope will depend on circumstances and can be agreed on an individual basis.
As a company Director, why do I need a review?
Companies with underlying cash flow issues, challenging trading situations, or a difficult lender relationship can benefit from a review.
How can a lender-client relationship improve?
Many companies experience periods where the relationship with their lender appears to deteriorate, due to many factors such as staff changes or concerns about a company’s viability. This can lead to uncertainty about whether a lender will renew facilities, or whether other stakeholders will continue their support (eg key suppliers).
We can help companies to improve trust between the company and its stakeholders through:
- understanding the nature of their stakeholders' concerns and establish a plan to address these;
- understanding the reasons behind any financial pressures and create a tailored strategy to manage these;
- establishing the level of funding needed for companies looking to grow;
- presenting an additional finance request; and
- maintaining ongoing monitoring, reporting and support.
Solutions can include changing the presentation of management information or producing a report detailing the company’s operations, financial highlights and strategy. RSM can also create a contingency plan, such as finding an alternative lender.
Our team can act as a third-party adviser and help to present information in an effective way for both company and stakeholder.
If a third-party adviser is already appointed we can act as an interface for companies, helping to ensure that there are no misunderstandings.
