Refinancing Review (R-IBR)

The need for information on the part of financiers increases when financed companies find themselves in challenging situations. Full transparency is often lacking and confidence in the decision-makers can wane. In this situation, you are looking for a quick and objective assessment of the current situation. This is exactly what a refinancing review or Independent Business Review (Refi-IBR) provide.

Overview

A refinancing review is the fastest way to obtain reliable answers for dealing with a debtor’s crisis. The scope of analysis is based on the proven FTI-Andersch Independent Business Review (IBR). The customized IBR for (re-)financing includes assessment criteria based on our experience in challenging (re-)financing situations. The modular approach available for this purpose allows flexibility and tailored focus on the essential analysis criteria of each object under consideration and can be extended as needed to meet the requirements of the situation. The aim is to create full transparency as quickly as possible to make upcoming financing decisions reliably and quickly.

Especially in refinancing situations, the Refi-IBR offers a resilient analysis and sound basis for decision-making for all stakeholders. In this context, the independence of FTI-Andersch ensures a neutral and transparent assessment, which also makes decisions with strategic implications possible.

Services

Independent brief analysis with tailored focus

Questions for our team

When would you advise financiers to conduct a refinancing review or Independent Business Review (Refi-IBR)?

In practice, covenant breaches are often the trigger for a Refi-IBR. This means, for example, when covenants, contractual clauses or ancillary agreements in loan agreements can no longer be met by companies. Based on the Refi-IBR, new, more resilient agreements can be agreed upon with the companies. By focusing on specific issues, it is also possible to obtain information on how new business areas or certain locations have developed, for example. Or perhaps the business model has been adapted and the financier wants to obtain a neutral overview of the development of the strategy through a quick check. The advantage over a restructuring report is that the compactness and the individual orientation or focus on the respective company can quickly produce valid results.

Can such a brief company analysis ever be a reliable basis for far-reaching entrepreneurial decisions?

Absolutely. An IBR creates transparency about the company's financial and earnings situation as well as its market position. By focusing on topics and areas agreed upon with the financier, this brief company analysis is tailored to the information needs of the report recipients and therefore has high informative value. An IBR can 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 the measures developed can be evaluated as part of a potential analysis.

Can you give a current example from your experience?

An automotive supplier was only partially able to pass on steel price increases to its customers and increasingly tied up capital in inventories due to supply chain difficulties. This led to a deterioration in earnings and liquidity. Deviations from plan led to a corresponding loss of confidence on the financier’s side. As part of an IBR, we conducted an extensive market and competitive analysis and installed a stringent working capital management system. Our market assessment formed the basis for price negotiations with customers and led to a ten percent increase in revenue. This stabilized the financial planning, and the earnings gap was closed. Then, nothing remained in the way of refinancing by the financier.

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