Independent Business Review

What is Independent Business Review?

An Independent Business Review (IBR) is a financial review that provides an unbiased view on the company’s forecasts by utilising facts and figures provided by the company and external resources. IBRs may be requested by any creditor which holds a financial interest in the company. These may include commercial banks holding debt, the companies themselves, investment banks and private equity firms. The reports are then used to make credit decisions.

Independent Business Reviews are normally conducted when a company faces a certain kind of problem to which a creditor does not know how to react. The company has its own view of their future, and the IBR should provide an unbiased review. The goal of an IBR is to identify potential risks leading to crisis situations. In conducting an IBR selection of resources, speed of response and communication is essential. If conducted on time an IBR can allow for a better chance of recovery.

The bank usually has some sort of view on this matter, but a third-party unbiased review is always appreciated. At times, the bank's credit portfolio analysis also requires an independent assessment of the state of the customer. In certain cases, such assessment determines how the bank intends to deal with this company in the future.

Investors look at different things in corporate customers than financiers do. To financiers debt sustainability is important, while investor look at the value of growth. Of course, the two go hand in hand, but when doing the report one has to keep in mind to whom it is to be presented. In both cases the facts are more important than estimates.

Our approach is to first conduct a preliminary appraisal, whereafter we analyse the business plan from a financial perspective. We conduct scenario analyses and assess different options.

At Greenstep IBRs are conducted by financial experts with solid experience in guiding companies in financial distress. You will receive a dedicated team with diverse backgrounds ranging from accounting and finance to statistics.

Want more information about our Independent Business Review service? Contact us here.