Services

Business Survey | Collateral Review

Situation: An existing, moderately profitable industrial manufacturing customer submitted a business plan to a lender reflecting a proposed acquisition. The acquisition created significant synergies and profits but required additional financing resources. The lender called Moore Colson to verify the merits of the business plan and reasonableness of assumptions.

Action: Moore Colson sent two senior professionals to meet with the customer and to visit the proposed acquisition target. Through application of direct costing formats and assessment of manufacturing cost systems and overhead allocations, Moore Colson discovered significant deficiencies in profitability assumptions of the target acquisition. Moore Colson presented findings and recommendations to the lender who, in turn, shared the report with the customer.

Result: The customer renegotiated a 20 percent lower acquisition purchase price and closed the transaction with the lender's support and financing.

back to top

Situation: A financial institution restructured its operations such that all collateral reviews for customers in the southeast were to be performed through its Atlanta office. Short on field examiners in a tight employment market, the financial institution needed to find an outsourcing partner.

Action: Moore Colson met with management of the financial institution and structured a staffing arrangement to cover both prospect and recurring customer field exams. Working with the national audit management of the lender, Moore Colson conducted training courses with its team members on the financial institution's field exam package and developed a team of auditors equipped to address the risks specific to the lender's customers.

Result: The financial institution was able to meet its requirements for performing timely collateral reviews on its customer base. Moore Colson gave the lender the flexibility of scheduling collateral reviews for prospects with as little as 24 hours notice, thus creating a competitive advantage for the lender by significantly improving its responsiveness.

back to top