- SURVEY EXAMS
LCG performs comprehensive independent collateral field examinations on prospective borrowers or targeted investments in many different industries. Our examiners assess the prospect’s collateral, analyze trends, review systems and operations, review financial reporting, as well as several other targeted areas that assist our clients in making sound credit or investment decisions. Our goal is to provide our clients with a report that is tailored to their needs and relevant to each individual deal.
- RECURRING EXAMS
LCG can accommodate our clients with quarterly, semi-annual, or annual collateral field examinations. Often, account executives are too busy to schedule recurring collateral field exams. We relieve that burden from our clients by preparing a detailed schedule of exams that is approved by all parties involved. Once on site, our examiners will perform the necessary testing to ensure the client is fully aware of their customer’s collateral position and financial well-being. The result is a thorough collateral field examination report that is provided in a timely manner.
- RISK ASSESSMENTS
Risk Assessments consist of an on-site review of a borrower’s overall credit risk. Rather than performing the time-consuming tests and reconciliations typically associated with a collateral audit, these reviews focus on financial performance and trends, collateral trends, operations, management, policies and procedures, and any other material pre-funding deal points. Risk assessments are typically less costly and time consuming and are shorter and less cumbersome than full Collateral Audit Reports.
- COLLATERAL VERIFICATION
LCG personnel will verify the existence and quality of a lender’s collateral. Verification services include telephone verification of accounts receivable, inventory floor checking, and site inspections of real estate, machinery and equipment, and other property.
- DESKTOP REVIEWS
For many lenders, account executives and investment managers simply do not have the time or resources to review a borrower’s performance and track record. So, if a site visit is not practical or warranted, LCG can perform a thorough desktop review of the borrower’s performance and any changes in its collateral. This review can also include the spreading and analysis of financial statements, compliance with loan covenants, and trend analysis of key performance metrics.
FINANCIAL INSTITUTIONS GROUP
The Financial Institutions Group (FIG) at LCG is a team of dedicated professionals with expertise in specialty finance. Our team conducts hundreds of transaction advisory and due diligence engagements on financial institutions each year with two distinct verticals: the Consumer Finance vertical and the Commercial Finance vertical. With our in-depth understanding of the industry, we are well-positioned to provide specialized and effective support to our clients.
- Consumer Finance
The Consumer Finance vertical focuses on subject companies and portfolios which lend primarily to consumers. Example sectors include:
- Auto Loans & Leases
- Debt Purchasing
- Tax Lien Investing
- Debt Settlement
- Buy Now Pay Later
- Debt Consolidation Loans
- Auto & Home Warranties
- Plaintiff Advance
- Unsecured Lending
- Commercial Finance
The Commercial Finance vertical focuses on subject companies which lend primarily to businesses and for business purposes. Example sectors include:
- Equipment Leasing
- Asset-Based Lending
- Merchant Cash Advance
- Floorplan Lending
- Hard Money Lending
- Medical Lien Receivables
- USDA Lending
- SBA Lending
- Purchase Order Lending
As professionals with an in-depth understanding of the unique challenges faced by financial institutions, LCG is able to provide specialized due diligence services and support in accessing the capital markets. Our expertise in the operations of these organizations allows us to deliver tailored solutions to meet client needs.
At LCG, our transaction advisory and due diligence engagements are comprehensive, covering key areas such as credit file and underwriting testing, incoming and outgoing cash testing, delinquency and write-off testing, and portfolio statistical analysis. We also record accounting and operational policies and procedures, as well as conduct collateral availability and covenant compliance analysis for lenders. Our aim is to provide a thorough and holistic assessment of the organization.
We understand each of our clients’ needs differ and we will work with your firm to generate a scope of work – however extensive or limited – which covers all areas desired to successfully execute your transaction with confidence.
LCG provides physician practices with a comprehensive suite of financial and strategic advisory services, working with clients to tailor a solution to achieve their strategic goals. LCG works with our client’s management teams to facilitate investment banking transaction processes and strategic consulting engagements, including:
- Sell Side Transactions
- Buy Side Transactions
- Practice Mergers
- Capital Formation
- Management and Leveraged Buyouts
- Acquisition Financing
- Strategic & Management Consulting
- Due Diligence Support and Acquisition Due Diligence
- Quality of Earnings
- Practice Valuations and Pricing Structures
- Partnership Buy-In & Buy-Out
- Physician Compensation Models
With every engagement that we pursue, LCG works with clients to obtain a deep understanding of their practice, establish engagement goals, and develop and execute on a strategy to achieve our client’s strategic goals.
LCG’s Key Differentiators
- Exclusively focused on independent, physician owned practices that are seeking to either a) explore a sale or recapitalization of their practice with an outside capital partner, or b) build value for their practice via practice mergers, acquisitions, and/or strategic projects
- Entrepreneurial and flexible platform without client size parameters – we seek to work with entrepreneurial physician practices and outpatient facilities where we can add value and develop long term relationships
- Significant private equity experience – through LCG’s other business lines we have a strong understanding of how private equity groups look at investment opportunities, what drives value, and how best to position a company for investment
- Comprehensive suite of financial and strategic advisory services provided by a robust team with advisory, investing, and operating backgrounds
- Unsurpassed access, credibility, and relationships with lenders and capital providers
RECURRING REVENUE GROUP
The Recurring Revenue Group (RRG) at LCG is a team of professionals who specialize in performing due diligence on companies with recurring or subscription-based revenue models. These companies often face unique challenges, such as managing customer churn and forecasting future revenue. By fully understanding the operations of these companies, we are able to provide valuable insights and guidance to clients.
LCG has extensive experience with the following recurring revenue business models:
- Cloud Service Models
- SaaS (Software as a Service)
- PaaS (Platform as a Service)
- IaaS (Infrastructure as a Service)
- DaaS (Data as a Service)
- Security Alarm Monitoring
- Consumer subscription-based revenue models
- Commercial subscription-based revenue models
LCG has developed a specialized practice in performing comprehensive collateral reviews covering key areas such as churn and retention analysis, revenue reconciliation, contract reviews, cash application testing, A/R statistical analysis, and cash reconciliation. We also review accounting and operational policies to identify any issues or weaknesses. In addition to providing a holistic assessment of the organization, we calculate collateral availability and analyze financial covenants to ensure compliance with the terms of the credit facility.
We understand the needs and goals of our clients differ, even from deal to deal. Our ability and willingness to tailor the scope of work for each engagement allows us to deliver exactly what our clients need in order to make decisions with confidence.