Preloan Examinations

A collateral and financial evaluation of a prospective borrower performed on behalf of a bank or specialty finance company.  The examination focuses on determining borrowing base availability (typically based upon accounts receivable) and provides a comprehensive analysis of the bank’s proposed collateral for prospective clients. Using our decades of healthcare and non-healthcare underwriting and field examination experience, our team analyzes financial data, assesses risk, identifies collateral impairments, analyzes trends, and recommends mitigants to credit related concerns so our clients can make well informed credit decisions.

Recurring Examinations

A collateral and financial evaluation of a current borrower of a bank or specialty finance company. The examination focuses on recalculating and confirming borrowing base availability, analyzing financial data, assessing risk, identifying collateral impairments, analyzing trends, and recommending mitigants to credit related concerns so our clients can protect their investment.

A Quality of Earnings Analysis is typically provided for buyers, sellers and lenders involved in an M&A transaction. It’s an evaluation of a target company’s historical financial performance (revenue, gross profit & EBITDA) with a focus on determining the reasonableness of reported EBITDA followed by a pro forma EBITDA adjustments for the period under review. This analysis provides the interested party with insight into the risks and opportunities associated with the target business under review.

Typical Quality of Earnings Analyses include the following:

• Key diligence findings

• Pro forma EBITDA bridge

  • Review of management adjustments

  • Recommended diligence adjustments

  • Summary of non-recurring items

• Validation of revenues

  • Cash-to-revenue analysis

  • Accounts receivable analysis

  • Revenue analysis

  • Analysis of bad debts

• Validation of expenses

  • Cash-to-expense analysis

  • Accounts payable analysis

  • Vendor concentration analysis

• Key performance indicator trends

• Balance sheet analysis

  • Review for items that could encumber or impair assets or cash flow

  • Capex requirements

  • Analysis of working capital