What is an independent business review | IBR?

7 August 2017

An independent business review (IBR) is when an outside party, usually a secured lender/funder, sends in people to establish the solvency of the business. This may happen when they believe that their lending is at risk. Of course, some lenders do it more routinely than others. It is usually carried out by the insolvency department of an established accounting practice.

Although the IBR is used to report directly to the lender it is the company that usually pays. Given that it is supposed to be a thorough assessment of the business's financial situation they do not come cheap. However, they should help the company to identify areas that need attention and may give the funder piece of mind. In addition they may lead to more funds becoming available to effect a turnaround.

So what will they look at?

  • current trading and financial position;
  • profit and cash flow projections;
  • business and financial strategies;
  • sensitivity analysis;
  • management and systems;
  • bank security cover; and
  • the way forward for the business.

On the flip side it may lead to the funder appointing administrators to protect their position. It is normally the case that the administrators appointed would not be the same company that carried out the IBR as otherwise there would be an apparent conflict of interest.

If you think your business may be in difficulty we can look at the options and will give you a solutions report for which we do not charge! This report mainly establishes whether the business is insolvent or not and looks at the position of all of the creditors. As such it can advice on the options and give you a way forward.

I am a lender and would like a company like KSA Group to do a review of the business!

We can do that as well of course! We will not charge you 'big four accounting firm' fees either.
Why not have a look at our sample IBR to get an idea of what sort of information we can provide:

I am a lender and would like a company like KSA Group to do a review of the business!

We can do that as well of course! We will not charge you 'big four accounting firm' fees either.

Why not have a look at our sample IBR to get an idea of what sort of information we can provide:

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