A critical first step to address underperformance in a business is to have a clear understanding of what is actually happening.
The absence of accurate data and detailed information about key aspects of a business makes good decision-making impossible. Our highly experienced team of specialist reporting and forensic accountants, who work closely with a range of financial stakeholders including banks, asset-based lenders and peer-to-peer lenders, carry out a suite of independent business reviews, including options reviews and solvency reviews. These are carried out to help every stakeholder gain a clearer understanding of the underlying reasons for underperformance.
Every review is tailored to the unique circumstances surrounding the challenges to a business and we utilise the skill sets of a wide range of disciplines. For example, a review may include an assessment of the market and business strategy, as well as the effectiveness of management teams, group structures, internal systems and processes. In addition, the review may also include an analysis of historical trading patterns, review of future sales, cash flow forecasts and liquidity. An analysis of profit and loss as well as assets and liabilities is also often part of a review as well as the capacity for current and future debt and the position of stakeholders who have a financial interest in the business.
The reviews carried out by our team are robust, independent and thorough. They clarify the true position of the business, making it possible to set out and evaluate the options that are available. This enhances the decision-making process of both the stakeholders and business owners, which can lead to plans that will address underlying problems and improve business performance. In addition, a review may identify the need for further lending to fund a turnaround, which may also include a temporary engagement with a turnaround professional. It may also be a precursor to an insolvency process that ensures the stakeholder protects their position.
In some cases, the review uncovers unprofessional and illegal conduct. Recent assignments have included reviews on behalf of asset-based lenders where clients had defaulted on or contravened the terms of their agreements. In one instance, our findings uncovered a large-scale fraud which had been hidden from the management team. Our ability to act quickly and independently meant that the lender was able to secure their position, at speed, to mitigate further losses.
Our team brings together the right combination of expertise, allowing us to work successfully alongside businesses and their financial stakeholders. This enables us to offer specialist advice and deliver the best outcomes for clients. Together with our combined experience, collective insight as well as deep sector knowledge, our offering is unrivalled and we pride ourselves on acting quickly and independently. This means that directors and their stakeholders gain the right advice when it is needed, receiving partner attention throughout the course of the assignment.