Sherwood understands that timing is crucial in any workout environment. Stale information has little or no value. The borrower may already be using cash collateral to build an insolvency ‘war chest.’ Accordingly, Sherwood is prepared to move quickly, usually within 24 hours and provide the lender with an accurate financial snapshot. We also provide analysis to help the bank with alternative strategies and their consequences; bankruptcy, out of court restructure or the sale of the business.
Inventory Costing Analysis
Inventory is one of the most misunderstood aspects of a collateral borrowing base. We evaluate not just historical cost, but identify the company's excess/obsolete inventory and can evaluate standard costing systems when appropriate. This is often an area of misstated costs in middle market companies.
Conversion to Conforming or Daily Reporting
In a workout situation, it may be appropriate to place a borrower on a daily collateral reporting regime. We can assist the borrower in setting up the appropriate reporting systems.
Unfortunately, some borrowers will use any means to achieve their goals, even if it involves fraud activity. Sherwood has conducted numerous fraud investigations and is thoroughly familiar with the many schemes and red flags associated with fraud.
In any restructuring a lender needs to know that they are dealing with honorable businesspeople and our monitoring can provide that comfort level.
Contact Sherwood Partners, LLC and discover how we can assist you in your Forensic and Investigative Accounting requirements.