Independent Corporate Business Review and Liquidity Review
What we do
We work with financial stakeholders and/or management to conduct a review of the liquidity and related cash flow forecasts of borrowers to understand and analyse drivers of cash flow. For example: trading performance, working capital restructuring costs or provision payments. This work requires us to assess amongst others, intra month peak requirements, vulnerabilities and potential upsides. This provides shareholders or lenders with an independent view on whether its portfolio company or borrower has adequate liquidity to continue operating normally, thereby allowing time for them to consider their options.
Where we can help
We conduct high level ‘stress tests’ and analysis of the business plan. We can help shareholders or lenders take a view as to whether the business plan provides a reasonable basis to determine the debt capacity and to make future lending decisions or prepare management for negotiation about future funding, by taking the following steps:
- Carrying out a review of track record plus normalising one-off exceptions, in order to provide a basis to test and challenge management’s business plan;
- Assessing revenue, costs and cash conversion assumptions included in the plan, and commenting on their reasonableness; and the use of specialist Deloitte resources to review specific aspects of the plan. (For example; prevailing market assumptions, operational metrics / improvements, pension and tax.)
