Secured lender services, analysis, report and assessment
Quabbala Limited, our law firm in London, provide concise, commercial advice and services to financiers based on our understanding of the requirements and needs of their asset management teams. We understand the importance of the financiers’ relationships with those customers of a high risk profile, the importance of rehabilitating and restructuring the customers’ business in conjunction with the financiers, providing an accurate analysis of the reasons for business failure and explanations as to the depletion of the underlying securities held by the financier.
This strategy can also involve placing the company into Voluntary Administration and ultimately a Deed of Company Arrangement, to the satisfaction of all stakeholders.
We are highly skilled accountants who have extensive experience with the preparation of financial reporting and analysis, business financial statements, financial accounting reports, security risk assessments and financial accounting & reporting.
Investigating Accounting Reports assist financiers in determining borrowing requirements and the options available for recovery from under-performing borrowers.
An engagement approach will typically involve:
Analysing the financial performance and position of a company;
Understanding operating activities, key drivers and commercial/contractual arrangements which has impacted the financial performance;
Analysis of historical trading results and generation of and use of funds;
Understand and assess:
- business strategy;
- financial projections;
- utilisation of available resources/cash;
- industry issues and any potential future significant impacts for the business;
- management capacity/capabilities; and
- consideration of business improvement options.
The engagement’s result in the formulation of a strategy or strategies that meet the needs of both, the secured creditor and the company. In some instances the Investigating Accountant may be involved in a monitoring process as strategies are implemented.
Pre-lending Viability Reviews
We can conduct investigations into the viability and creditworthiness of businesses carried out prior to lenders committing funds to new customers, or additional facilities to existing customers.
The review will provide a detailed assessment of the lending proposal encompassing the lender’s criteria including assessment of the management of the company, review of its current financial position, analysis of projected future performance, existing and future funding requirements and the availability of security.
Each case is different and as a consequence, the review is completely flexible and can be tailored to meet the requirements of each individual lender.
Quabbala Ltd implements techniques to objectively evaluate the total risk of your company with a wholistic approach that assesses changes that may have occurred since initial planning was made.
These could include possible changes in the economic, political and market environment, including management capability and structure.
Risks arising from the environment are often to be the root of initially well laid out plans running into difficulty.
We can assist with establishing performance monitoring procedures for businesses to enable critical operational and financial information to be prepared, analysed, and reported on to the lender on a regular basis. This provides greater security for the lender and ensures that corrective action can be undertaken before the situation reaches a crisis point.
In these circumstances, regular site visits and reporting structures can be put in place to monitor the ongoing performance of the business.