Independent Business Reviews

Lenders can benefit from a comprehensive review of the business activities of borrowers. BTG Advisory undertakes independent business reviews (IBRs) which provide a detailed picture of borrowers’ financial and operational performance and identify red flags may impact on their viability or highlight potential issues including future ability to service debt. We also look, where possible, to make practical and helpful suggestions for business improvement options. 

Our IBRs include analysing cash flows, profit and revenue forecasts, management team capability strategy, assets and liabilities, historical performance, long-term viability, debt servicing history, and working capital requirements. Within the borrowers’ business, we interrogate the strength of the operational organisation, its in-house financial and governance systems, controls and security. The full range of outcomes from IBRs that we can assist lenders to achieve are:

(i)             Injection of fresh capital, either debt or equity

(ii)            Lender increases its exposure

(iii)           Lender permits an increase in exposure via a new third party

(iv)           Lender maintains the status quo with, for example, close watching brief

(v)            Lender exits

In order to achieve any of the above successful outcomes for the lender client, it is desirable that BTG Advisory works closely with all stakeholders, including borrower management teams, in order to secure their co-operation in any strategic decisions the lender might want to take. With many decades of senior experience to call on, BTG Advisory pinpoints the information that really matters and recommends realistic actions to deal with any identified issues. We also consider industry-specific circumstances and the broader macro context, along with relative sector input, and assess the prevailing sector liquidity.