When a company is in a distress situation, its bank may be applying pressure to meet working capital requirements and loan ratio covenants, and to provide it with a business plan with financial projections. Or the pressure could be applied by shareholders or other creditors.
Campbell, Saunders Ltd. can provide an independent and objective assessment of the company that may be shared with the lender to allow it to make informed decisions based on unbiased information.
The scope of a business review may include some or all of the following:
- Review of recent financial performance and current financial position including analysis of industry and market conditions and trends
- Assessment of management information systems, and the accuracy and timeliness of financial reporting
- Review of business plan, cash flow projections and future viability
- Assessment of short-term cash flow requirements
- Liquidation assessment to estimate recovery to stakeholders from security enforcement or a sale of the business
- Review of available options