We offer an objective, external analysis of the company’s business. An IBR gives an independent view of the company’s financial situation and the realism behind future forecasts. An IBR may be requested by any creditor holding a financial interest in the company. The aim is to identify the risks associated with the company’s business and to provide creditors with an objective assessment on the company’s ability to cope with its obligations related to existing and possible additional financing.
Usually an IBR is ordered when an enterprise encounters a problem the financier is unsure how to react to, or when the views that the company and the financier have on the future of the company differ greatly. The company can also order an IBR on its own initiative to use in negotiations with financiers and other stakeholders.
The content of IBR may be customized
The IBR includes e.g. the following topics:
- Analysis of the current business
- Evaluation of liquidity and financial situation
- Market analysis, company’s position and competitive advantages on the market, threats and opportunities
- Reviewing the business plan and strategy of the company
- Evaluating the validity of the management’s views considering current financial situation and future development
- Calculating future cash flows and ability to cover debt (1 – 5 years)
- In-depth analysis of profitability, financial situation and liquidity on short-term (1 – 18 months)
- Defining risks involved with the forecasts
- Options analysis
Our approach includes financial modeling of the business plan, scenario analysis, and assessing the eligibility for financing.
An IBR supports financial stakeholders in their decision making. An IBR is always tailored to address the specific circumstances, providing answers to the questions relevant in each situation.