Debt advisory
Clarity and confidence for a distressed company and its lenders
We provide strategic, financial and operational advisory services to lenders and private credit investors navigating exposures to borrowers where value is at risk. We also support secondary debt investors in a special situations context.
When a company is facing financial distress but not yet insolvent a special set of skills is required to assist lenders and private creditor investors with strategic, financial and operational advisory services. We can also assist a borrower facing distress to prepare and negotiate with their lenders to maintain control and achieve the best outcome for them, their investors and the lender.
Our senior team has a reputation for independent, creative advice that facilitates consensual outcomes and maximises value for all stakeholders.
Our debt advisory services
To assist distressed borrowers and lenders we provide:
- Situational assessment – We review and advise on immediate stabilisation needs and short-term cash flow outlooks. This often involves preparing or reviewing a 13-week cash flow forecast. We can validate the assumptions of existing forecasts or work closely with management to prepare one as needed.
- Business plan and forecast evaluation – We evaluate business plans and financial forecasts to identify key assumptions, risks, and their impact on enterprise value. This typically takes the form of an Independent Business Review (IBR) or Investigative Accountant’s (IA) report.
- Options analysis – We assess the available options for both the borrower and lender, including contingency planning where consensual restructuring cannot be achieved and a formal insolvency is required.
- Negotiation support – We support the negotiation and implementation of financial restructures, helping stakeholders reach practical, timely outcomes.
- Stakeholder management – We coordinate stakeholder engagement, mapping disparate objectives and building alignment. Our independence and deep lender relationships help foster trust and credibility amongst all stakeholders.
- Monitoring – We monitor performance during and after a restructuring, including asset sales, to ensure the plan stays on track and enable early intervention if needed.
What is an Independent Business Review?
An Independent Business Review (IBR) is a detailed assessment of a company’s financial health, operational performance, and future prospects. Typically commissioned by lenders or stakeholders, an IBR provides an objective analysis of:
- Current financial position – including cash flow, working capital, and debt obligations.
- Liquidity and funding requirements – identifying short- and medium-term needs.
- Business viability – evaluating the sustainability of operations and strategic options.
- Enforcement options – commentary on what returns an enforcement scenario may provide and the risks or advantages of this option.
An IBR provides lenders and the company with a ‘single source of truth’ that allows all stakeholders to make informed decisions about continued support, restructuring options, or enforcement strategies.
Our approach to cash flow and liquidity assessments
We combine financial analysis with operational insight to provide a complete picture of a business’s position and options.
Our process includes:
- Detailed cash flow analysis – assessing short-term liquidity and forecasting future requirements.
- Scenario modelling – stress-testing assumptions to understand potential outcomes.
- Operational review – identifying performance improvement opportunities and cost efficiencies.
- Actionable recommendations – delivering practical strategies to stabilise cash flow and protect value.
By leveraging our multi-disciplinary capabilities and breadth of industry specialists, we deliver sector relevant insights that provide stakeholders with clarity, confidence, and a roadmap for informed decision-making.
How we help
At KordaMentha, we go beyond the numbers, delivering actionable insights and practical solutions.
This combination of financial analysis and operational expertise ensures that you can make strategic decisions and position your organisation for the best possible outcomes with clarity and confidence.
Why choose us?
- Independent and trusted advisors: We provide objective advice and act without conflicts, ensuring decisions are made in the best interests of stakeholders.
- Multi-disciplinary capability: Our team brings together technical and industry specialists to deliver sector relevant insights and ensure that our approach addresses sector specific risks, compliance obligations and operational nuances.
- Tailored strategies: We take the time to understand your priorities and the unique dynamics of every organisation’s financial and operational structures, ensuring that our approach aligns with your objectives.
Who we help
Lenders
We provide IBRs and cash flow assessments to give you clarity on a borrower’s financial position and your options.
Learn more about our services for lenders
Companies
We help boards and directors understand their financial position, identify risks, and develop strategies to stabilise cash flow and protect value.
Learn more about how we support companies
Small and medium sized businesses (SMBs)
We work with SMBs facing liquidity challenges to provide practical insights and tailored solutions that improve financial resilience.
Explore related services
Our cash flow and liquidity assessments and IBR services are often the first step in a broader restructuring or performance improvement strategy. Related services include:
- Restructuring and turnaround – Stabilising businesses and restoring value.
- Performance improvement – Identifying operational efficiencies and cost savings.
- Forensic investigations – Uncovering irregularities and mitigating risk.
- Corporate finance advisory – Supporting refinancing, capital raising and strategic transactions.
