The Managing Recovery Report

All businesses reach crossroads, and when the way forward needs to be appraised, the management or its bankers may identify this need. It is not necessarily a crisis time, but fundamental decisions may need to be taken to support the company's financial position as it moves forward.

The P&A Partnership's dedicated team of Chartered Accountants is well versed in corporate financing. The value of "Managing Recovery Reports" is well recognised by banks and their clients.

The review, which is independent, explores:

• the current financial position;
• the business strategy;
• the business viability;
• the trading projections;
• management capability;
• the true worth of bank and other lenders' security;
• the level of ongoing bank support.

The recommendations will include:

• structure of facilities and alternative financing options and security support needed to support a turnaround plan;
• customer/bank reporting requirements;
• profit and cash flow improvement plans;
• changes to the corporate structure and management where appropriate;
• an action plan agreed with the client.

The benefits include:

• a consensus on the way forward;;
• the flagging of potential problems;
• a discipline for management;
• the identification of opportunities for profit improvement;
• a level of comfort for the lender;
• a less threatening review than a viability report;
• usefulness to management.

The report and recommendations will be made in a presentation to the bank and client, as appropriate. There can be a follow-up review, normally after three months, to check that plans, monitoring and procedural recommendations have been put in place.

There is a fee for this service, agreed at the time instructions are given.