Financial review and reporting

What is an Independent Business Review (IBR) or Options Review (OR)?

An Independent Business Review (IBR) or Options Review (OR) is an assessment of a company’s current and projected financial situation. It can be useful for limited companies, sole traders or partnerships. The review can be relatively light touch or quite detailed, depending on the perceived need and the cost involved. It is often requested by a company’s lender but can also be useful for any stakeholder. 

As a lender, why do I need a review for my client?

Lenders with clients who regularly exceed their agreed facilities, request limit increases or capital repayment holidays may benefit from a review. The exact scope will depend on circumstances.

As a company Director, why do I need a review?

Companies with underlying cash flow issues, challenging trading situations, or a difficult lender relationship can benefit from a review.

How can a lender-client relationship improve?

Many companies experience periods where the relationship with their lender appears to deteriorate. This can be due to many factors ranging from staff changes to concerns about a company’s viability. This can lead to uncertainty about whether a lender will renew facilities, or other stakeholders continue to support (eg key suppliers).

We can help companies to:

  • understand the nature of their stakeholders' concerns and establish a plan to address these;
  • understand the reasons behind any financial pressures and create a tailored strategy to manage these;
  • establish the level of funding needed for companies looking to grow;
  • present an additional finance request; and
  • maintain ongoing monitoring, reporting and support.

This can often lead to improved trust between company and its stakeholders. 

Solutions can include changing the presentation of management information or producing a report detailing the company’s operations, financial highlights and strategy. RSM can also create a contingency plan, such as finding an alternative lender.

RSM can act as a third-party adviser and help to present information in an effective way for both company and stakeholder. 

If a third-party adviser is already appointed we can act as an interface for companies, helping to ensure that there are no misunderstandings.

Contact us to find out how we can advise.