A guide to independent business reviews
Produced in partnership with Allan Kelly of RSM UK Group LLP
A guide to independent business reviews

The following Restructuring & Insolvency guidance note Produced in partnership with Allan Kelly of RSM UK Group LLP provides comprehensive and up to date legal information covering:

  • A guide to independent business reviews
  • What is an IBR?
  • Who commissions the IBR and why?
  • Who undertakes the review?
  • Engagement
  • Cost and Payment
  • What will the scope and report cover?
  • Will the IBR impact on the company and what information will they have to provide?
  • What is the outcome of the IBR?
  • Other

This Practice Note looks at independent business reviews (IBRs) and aims to:

  1. provide high level guidance around an IBR

  2. identify when an IBR may be requested

  3. identify potential areas of conflict

  4. highlight common scope and report contents

  5. highlight common outcomes of an IBR, and

  6. highlight some key issues when being engaged

What is an IBR?

The purpose of an IBR is often misunderstood and may be viewed as a precursor to an insolvency or withdrawal of support by a lender.

Whilst either of these may be an outcome, an IBR is a valuable tool to provide an external view to a stakeholder as part of their decision making process.

An IBR is an independent, objective, unbiased assessment, often covering the current and future trading status of a company. They are used by stakeholders, mainly lenders, to assist them in assessing their options.

Whilst typically most IBR’s are focussed on the historic and future financial performance of a company, in their widest sense, an IBR can also encompass an assessment of it’s operational, commercial and governance performance.

The nature of a stakeholders needs have changed over the last 20 years. Component parts of an IBR are now often commissioned independently without a full scope being necessary to meet the stakeholders’ requirements, mainly around future viability, cash and options. Such limited reviews include:

  1. options review

  2. forecast