When a company experiences financial problems, it normally exhibits itself in cash flow difficulties, which puts the company in serious risk of breaching its lending covenants.
An IBR may be commissioned by a stakeholder, for example a Bank, who wants visibility on the company’s current financial position, and options in light of its working capital difficulties.
An IBR ordinarily covers the following areas:
- Cash flow, profit and revenue forecasts
- Historical financials and performance
- Assets and liabilities
- Short-to-medium term working capital requirements
- Debt servicing ability
- Operational management and capabilities of the management team
The IBR will also examine and comment on the following:-
- Legislation or market specific threats.
- Stakeholder expectations and objectives.
- Market and competition.
The outcome of the IBR enables the Board of Directors to make informed decisions about the business and its future direction, as well as our expert advisors providing advice or assistance in obtaining:
- Refinance or asset/invoice finance
- Obtaining a Time To Pay (TTP) deferral arrangement with HMRC
- Profit improvement
- Debt restructuring
- Exit Planning
Dean Nelson, Nicholas Lee, Andrew Stevens and Michael Roome are all licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales. They are bound by the Insolvency Code of Ethics which can be found here.
When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.