Independent Business Review
The client's situation
In a difficult economic environment, a heavily indebted company can no longer meet its financial commitments. The seriousness of the situation may range from a simple breach of covenants to an urgent need for an immediate injection of capital.
The various participants in the company (its shareholders, managers, and financial bankers, etc) require an assessment of the situation in order to identify the company's short and medium-term needs. In such a situation, they appoint Accuracy to carry out an Independent Business Review (IBR), i.e. a standard assessment of the company's past and projected financial situation. This IBR will be used to negotiate the restructuring of the company's financing packages.
The solution proposed by Accuracy
For the performance of this IBR, we propose a four-stage analysis:
- A “flash analysis” of the situation, making it possible to identify the company’s short term needs.
- An in-depth analysis of the company with the goal of defining its requirements and quantifying its capacity for recovery over the medium term. A number of business plan scenarios are generally envisaged, in addition to a detailed calculation of the related restructuring costs.
- The drafting of a report detailing past performance, the current financial situation, and the various hypotheses used in the short-term and mid-term outlook.
- Assistance during the negotiations between the participating parties and the provision of regular information according to the situation (confidential ad hoc mandate, safeguard procedure, etc.).
The key aspects of our analyses:
- Assistance with the drafting of forward-looking cash flow models for the next three months (14 weeks) and the midterm business plan.
- The identification of rapid solutions to optimise the company’s working capital requirements (payment management, the introduction of factoring solutions, etc.).
- Value outsourcing solutions: the assessment of sub-assemblies, the introduction of sale and leaseback solutions, etc.
- Support with a possible search for new Financial Partners.
The Accuracy difference
- The complementary experience of our teams specialising in the restructuring and transaction support fields. These teams are fully experienced in communication with financial establishments (both French and English).
- Clear conclusions which can lay the foundations for a consensus among the parties
- The capacity of our teams to analyse the “top line” of the business plan (including the market, competitors and prices, etc.). This enables you to provide information to financial partners who may lack an in-depth knowledge of the company’s business sector.