Firm Overview

LCG Advisors

LCG is one of the nation’s leading third-party due diligence and transaction advisory firms, performing over 900 engagements annually for top financial institutions. Our clients include money-center banks, institutional lenders and investors, financial intermediaries, and family offices. Services include quality of earnings reviews, collateral field examinations, business valuations, private placement due diligence, portfolio reviews, and desktop risk assessments. Our diverse team of professionals has extensive experience in most areas of corporate financing including audit, commercial credit, loan underwriting, public accounting, special situations, business operations, private equity, and investment banking. Our specialized experience provides our clients with additional insight into transaction risk that cannot be provided by many other professional services firms, especially those in public accounting.

Technology Advisory Group

LCG’s Technology Advisory Group performs quality of earnings reviews and collateral field examinations to support debt and equity transactions in the SaaS and other tech-centric sectors. In all cases, our clients rely on our ability to calculate and analyze the Monthly Recurring Revenue (MRR) of each client, prospect, or target, to ensure they are making sound credit or investment decisions based on accurate data. By focusing solely on technology-related transactions, LCG’s Technology Advisory Group provides our clients with a deeper and more well-rounded understanding of each business, giving them a level of insight and clarity unmatched in the industry.

LCG’s Technology Advisory Group performs their engagements with a high degree of insight to triage risks, as well as evaluate performance, and opportunities associated with the business under review. Our firm performed nearly 100 financial diligence engagements in the technology industry alone in 2020. Having a team experienced in the technology industry provides the group with a deeper and more well-rounded understanding of the various nuances of the various technology sectors than other firms.

Technology Industry Sectors

  • Software-as-a-Service (“SaaS”)
  • Data-as-a-Service (“DaaS”)
  • E-Commerce
  • Other IT Services

Technology Services

  • Quality of Earnings Reviews:
    • Analysis & Identification of EBITDA Adjustments, particularly with ASC 606
    • Robust Cash Flow Analysis
    • Understanding Revenue Recognition & Deferred Revenue Complexities
    • Assess Capitalized Software Development Costs
    • Review Sales Commission Treatment
    • Determine true Gross Profit, (i.e., Customer Success vs. Customer Support)
    • Calculate Pro Forma Net Working Capital & Net Debt Analysis
  • Asset-Based Lending Collateral Examinations:
    • Analysis of Customer Churn/Attrition
    • Reviews of Customer Contracts
    • Identification of Customer Concentrations
    • Evaluate Financial Covenants & Other Critical Metrics
    • Recurring Revenue to Cash Reconciliations
    • Wind Down Assessment
  • Proficiency in Revenue Management Systems and other commonly used systems in the SaaS space, such as SaaSOptics, Zuora, Recurly, Stripe, Quickbooks Online, Sage Intacct, and NetSuite, among others
  • Ability to self-run diligence reports from a Target’s accounting and revenue systems
  • Evaluate scalability of Accounting Systems & Departments
John Dendrinos | Financial Advisors | LCG Advisors | Tampa, FL, Collateral Field Examinations| Financial Advisors

John Dendrinos, CPA

Managing Director

Christopher Nix | LCG Advisors, Quality of Earnings, Due Diligence | Financial Advisors

Chris Nix, CPA

Managing Director

Brendan Clay – Technology Group Manager

Brendan Clay

Technology Group Manager