THE BANKING EDGE IN ACTION

The process falls into six stages and the end result is an efficient, effective process that includes monitoring and pre-determined follow-up procedures and delivers practical results not typically derived from traditional consulting methods.

1. Intake

This involves a two-hour meeting with the CEO to enable Edge to understand the company’s existing goals, strategy, positioning and challenges. At this meeting Edge will also identify the information it will need and agree a timetable for fieldwork. Most of this data can be obtained from various sources within the organization without burdening senior management. The time spent by your team is limited to essentials, ensuring that the Banking Edge process does not interfere with the effective running of the business.


2. Analysis

The Edge analysis looks at the banking documentation in the following areas:

• Covenants and Events of Default
• Collateral
• Personal Guarantees
• Reporting requirements

Edge looks especially closely at collateral cover, and a major part of the analysis is to find additional assets that may have a value so as to enhance the bank’s level of comfort.


3. Internal Reporting

Every company has key elements that act as an early warning of problems, and they differ widely from business to business. Edge identifies those that are appropriate, and sets up reporting mechanisms that surface the necessary information on a simple weekly report that the organization is trained to produce for the CEO. This report will contain bank collateral and covenant information and will be available as support to demonstrate to the bank that the company has a level of financial sophistication.


4. Report

Once the analysis and reporting overhaul is completed, a report is produced for the CEO. It is delivered in an action format that covers the strategy for dealing with the bank. Typically, the plan will cover how the company should position itself with the bank and how that positioning should be communicated. It will analyze how the relationship is currently structured and formulate a plan designed to change it if necessary.


5. Negotiating with the Bank.

Depending upon the specific circumstances, it may sometimes be appropriate for Edge to attend a meeting with the bank to present the strategy or negotiate changes in covenants, as it is often easier to be represented by a sophisticated third party than to have to represent yourself.


6. Implementation

When the Action Plan is finalized, a number of follow up meetings are scheduled, all attended by Edge’s President, Steve Davies. These meetings are designed to monitor progress against the Plan’s parameters and ensure accountability. Through this mechanism, Edge effectively holds the CEO’s feet to the fire, ensuring effective implementation and the meeting of critical deadlines.

With these steps, the Banking Edge delivers practical results not always found in more traditional consulting engagements.