Lender Advisory

We use a collaborative approach with lenders and borrowers to stabilize debt structures, frequently under time pressured and complex scenarios. We have significant experience from working closely with major clearing banks, asset-based lenders, debt funds and other specialist finance providers.

Where new or existing financing facilities are under review, our experienced advisors will seek to ensure all possible options are explored and the appropriate action is taken.

We seek to maximize value for all stakeholders while minimizing disruption to the borrower’s business activities as much as possible.

We provide regular written and verbal feedback to lenders throughout our engagements and seek to provide recommendations on appropriate courses of action.

Kroll’s Asset Based Lending Advisory Deal Highlights

We have recently seen an uptick in activity in both advisory and restructuring work for our asset-based lending (ABL) advisory team, particularly with regard to supporting lenders and their clients with the challenges presented by the current economic climate and ongoing negative headwinds. A selection of the key engagements we have worked on over the last six months is showcased below.

Top ABL Engagements

How Kroll Can Help

Independent Business Reviews

We carry out in-depth analysis of the borrower’s financial position, recent trading and forecast performance, and draw upon our significant experience to provide the optimal strategy for both lender and borrower.

Short Term Cash Flow Forecast Reviews

We carry out a detailed review of the borrower’s short term cash flow forecast and its principle assumptions. We will assess the likelihood and extent of potential funding requirements and recommend mitigation measures suitable for the lender and the borrower.

Pre-Lend Reviews

We work closely with the lender to assess the benefits of providing a borrower with new or replacement finance facilities and assess the key risks and merits of the proposition.

Covenant Setting and Performance / KPI monitoring

We conduct detailed analysis of the borrower’s historical trading and financial forecasts to advise on optimal structure for debt covenants. We identify key financial and non-financial performance indicators to monitor and ensure optimal business and debt performance.

Funding Structure Review

We can evaluate highly leveraged situations across a wide range of secured and unsecured financing scenarios and provide restructuring advice to ensure best performance of facilities for lenders. 

Options Analysis

Following a detailed analysis of the borrower’s financial position and forecast performance, we provide lenders with a comprehensive evaluation of the strategic options available to them – assessing the merits and drawbacks for each option.
 
Contingency Planning

We undertake contingency planning with lenders and borrowers which is bespoke to each scenario to provide confidence of continuity in business performance and enable smooth management of external and internal business changes.

Accelerated Mergers & Acquisitions

In circumstances of significant cash flow pressure, we can work quickly with the borrower to secure a sale of its business and assets. This can help to preserve value for lenders whilst seeking to preserve the underlying business.