Independent Business Review
When a company underperforms or is experiencing financial difficulties and has challenges in fulfilling its debt obligations, we can provide customised business reviews on behalf of the company itself, lenders or other interested parties. These independent reviews can make it easier to identify and evaluate alternative solutions, and are used to substantiate decisions for the business’ owners and lenders.
When is there a need for an Independent Business Review?
- As a company’s manager, you may need assistance in presenting a restructuring process to financial stakeholders.
- As a financial stakeholder, you may be concerned about the development of a company you have invested in or lent money to, and want to get an independent review to assess the situation.
Typical problems:
- The company is in breach of its loan covenants
- The debt burden is too high in relation to current and expected cash flows
How can PwC assist you?
- Layout the financial and/or operational situation of the business and present the alternatives in the short term, along with longer-term measures.
- Review how the market will evolve in terms of growth, competition, customers and product development.
- Assess the realism of budgets and business plans, including an assessment of the ability to service loans.
- Restore trust between the company and the lenders or other financial stakeholders.
How we can help
We focus primarily on the company's short and long-term liquidity and the planned measures in the business plan to determine whether the business has the ability to handle its obligations. This is evaluated with the expected developments in the relevant markets and specific risks associated with the business. On this basis, we conduct sensitivity assessments and preparation of various scenarios. The scope of the project is adapted to the situation at hand, and has a time frame of three to six weeks.
An Independent Business Review differs from due diligence in many ways, including having a greater focus on both short and long-term liquidity, as well as a greater focus on the alternatives and opportunities that exist to drive the company forward.
