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Independant Business Review (2)

Independent Business Review

 

The purpose of an Independent Business Review (IBR) during a crisis is to provide, in the timeliest manner possible, the parties involved (e.g. financial partners, creditors, stockholders, legal representatives) with an objective analysis of underperformance, an evaluation of the operations and financial situation, an impartial assessment of the coherence and reliability of the proposed exit plan.

 

With OCA’s approach, the signatory of an IBR must do away with all generic uncertainties and always conclude with a clear and confident professional opinion, regarding in particular:

 

  • The relevance, coherence and practicality of an operations and strategy plan (e.g. commercial plan, social plan) which takes into account the competitive environment (e.g. existing actors, entry barriers, etc.).
  • The relevance of the accounting structure and the ability to intelligently compare financial projections with past data.
  • The practicality and internal coherence of operations projections.
  • The coherence of the operations projections with short-term cash flow budgets and with medium-term cash flow statements.
  • The internal consistency of cash flow projections that primarily take into consideration, but not exclusively, the initial assets and liabilities, realistic turnover periods, the integration of short-term payment withdrawals and medium-term cash flow statements.
  • The repetitive review of available options to reduce the need for cash flow (e.g. optimizing Working Capital [WC], the transfer any non-strategic assets).
  • Coherent and realistic hypotheses to create a funding plan derived from financial data that has been properly verified.
  • Formulating recommendations of performance returns factors.
  • The necessity of injecting new money if all other options are unsuccessful.

 

This unique approach, which has the advantage of being immediately applicable and operational; explains the increase in the volume of missions which are particularly delicate and often complex; entrusted to OCA by funding partners for viable and clear information before agreeing to adjustments to a repayment schedule or new inflow of funds from businesses, from their mediators and ad hoc agents.

 
Last update : 30/08/2018