Independent Business Review (IBR)

In refinancing or challenging corporate situations, management and shareholders often want a quick and objective analysis of the current situation. Likewise, the need for information on the part of financiers is also increasing. This is exactly what an Independent Business Review (IBR) or a brief company analysis by FTI-Andersch offers.

Overview

An IBR is the ideal way to obtain reliable answers to clearly defined questions about the company's situation at short notice. Based on this brief analysis of the company, upcoming decisions with strategic and financial implications can be initiated quickly and effectively.

Especially in (re-)financing situations in times of acute economic challenges, an IBR provides the necessary decision-making basis for financiers. The independence of FTI-Andersch ensures a neutral and transparent assessment and guarantees reliable results.

An IBR also provides management and shareholders with a neutral overview of the current situation and relevant developments in the company. By focusing on previously defined issues, topics can be prioritized and dealt with in a timely manner with manageable personnel resources. In the process, potential for improvement and options for action are also identified regularly.

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Independent brief analysis with tailored focus

Questions for our team

When would you advise a company to conduct an Independent Business Review (IBR)?

In practice, covenant breaches are often the trigger for an IBR. This is the case when companies can no longer comply with certain contractual clauses or ancillary agreements or the key figures to be achieved in loan agreements. Based on the IBR, new agreements can then be reached with financiers. Other typical applications include a quick check on strategic, operational, or commercial issues, for example when shareholders want to obtain a neutral overview of changes in the business model.

An IBR is also frequently requested by stakeholders in the case of refinancing, for example if a financing is to be expanded in terms of volume, or if new financing partners are approached who do not know the company in detail.

Why not just get an “IDW S6 report”?

Due to the legally prescribed contents, the effort for an IDW S6 restructuring report is usually higher, as certain minimum legal requirements have to be met. An IBR, on the other hand, delivers reliable results in a short time due to its clear focus on certain key points. We regularly prepare IBRs for refinancing transactions to create transparency for all stakeholders. These companies are usually not explicitly in a crisis but use an IBR to provide existing and new financiers with an even better basis for decision-making.

Can such a compact analysis ever be a reliable basis for far-reaching business decisions?

Absolutely. An IBR creates transparency about the company's net assets, financial position, and operating performance, as well as its market and competitive position. By focusing on content agreed with the stakeholders, each IBR is tailored to the information needs of the report recipients and therefore has high informative value.

An IBR can often also be the starting point for further and more in-depth questions. For example, an option analysis can be used to compare the various possible courses of action in detail – or measures can be developed as part of a potential analysis.

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