Forensic Investigating & Accounting

Where Did the Money Go?

Accuracy and efficiency are keys to effective investigations of borrowers’ financial condition. Maintaining in-house specialists to conduct these investigations can prove costly and in today’s competitive environment, keeping costs in line is imperative. Internal staffing also relies heavily on adequate quality controls.

Sherwood Partners, Inc. has the experience and understands lenders needs/requirements for efficient service and effective reporting. Sherwood prepares extensive reports identifying problem areas on financial statements and related accounting systems to ensure proper reporting of collateral values. Our priority is on the need to respond quickly and efficiently, even in highly complex situations.

Two of the important features, in our reports are the Executive Summary and Recommendations. The Executive Summary distills key issues for you. The Recommendations contain suggestions to strengthen the borrower's reporting, accounting systems and monitoring procedures.

Pre-Loan

Sherwood’s experience and understanding of troubled debt restructurings enhances our ability to perform pre-loan inspections. We look at more than a borrower's financial statements; the ability to evaluate the financial condition of a current/prospective borrower including the quality of assets, earnings potential, the condition of liabilities and particular attention to management and its emphasis on internal controls and reporting systems. Regardless of whether the borrower’s financial statements are routinely audited, reviewed or compiled, a pre-loan inspection is essential to confident lending decisions.

Collateral Monitoring

Once a loan is approved, timely information regarding the borrower's changing financial condition and results of operations is imperative. We look at the controls over collateral and the internal reporting systems to determine if the eligible collateral is sufficient to support established line(s) of credit.

Evaluation of Internal Accounting Controls

Every investigation is designed to detect early warning signals that may not be apparent in the financial statements. The evaluation of internal controls will assist in assessing the quality of financial information received from a borrower. During our inspection, Sherwood can also evaluate the ability of the borrower's management to manage the business, grow revenues and control expenses.

Cash Flow Analysis

Sherwood also assists in understanding a borrower's cash requirements so that both lender and borrower can better plan for the future.

Business Plan Evaluations

Sherwood analyzes borrowers' business plans to obtain additional levels of understanding of the borrower's future financial health barometer. We interview company personnel, compare historical results, understand accompanying assumptions to business plans as well as researching industry standards and financial trends. Our report also provides insight on management’s ability to implement a restructuring plan.

Troubled-Debt Analysis

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.

Fraud Investigations

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, Inc. and discover how we can assist you in your Forensic and Investigative Accounting requirements.

Sherwood Partners, Inc.

Solutions | Results | Success | Since 1992

1100 La Avenida Street
Building A
Mountain View, CA 94043

Phone: 650-454-8001
Fax: 650-454-8040

E-mail: info@shrwood.com

Latest News

Assignment for the Benefit of Creditors

Assignment for the Benefit of Creditors

Sherwood Partners, Inc. has been the assignee for both private and public companies and our team understands that it takes much more than just signing a contract with an assignor. It takes a comprehensive strategic plan, to properly monetize the assets for the benefit of creditors.

 

IP Monetization of Intellectual Property

IP Monetization of Intellectual Property

Monetizing IP is the process of deriving value from the development of the IP or technology in question. We at Sherwood refer to it as gaining a “return on innovation” and recognize there are a number of pathways to deriving such value in practice.

 

Expertise for Family Held Businesses

Expertise for Family Held Businesses

Sometimes a trust or estate may hold a closely-held business asset. As a corporate fiduciary, you’re in the business of administering trusts and estates, not assessing, operating or liquidating a business. Sherwood Partners’ deep expertise in finance, operations, valuation and accounting enables us to provide sophisticated advice that is highly relevant to this asset class.

 

Debt Reduction and Renegotiation

Debt Reduction and Renegotiation

Sherwood professionals are experts in managing corporate obligations. Whether your company requires restructuring of a few troublesome obligations, needs to streamline and reduce debt or must quickly reduce its cash burn rate, we customize and implement a plan for each situation.

Solutions | Results | Success | Since 1992
Silicon Valley | Los Angeles | New York

Since 1992 Sherwood Partners, LLC has become one of the premier business advisory firms to the restructuring industry.

The Sherwood team of seasoned business professionals provides founders, shareholders and senior executives with more than a report – we at Sherwood go beyond traditional tactics to help make decisions and implement plans that achieve exceptional results.

© 2014 Sherwood Partners, Inc.. All rights reserved.