Bank Field Auditing Case Study 1 - Evaluating a Loan to a Private Equity Group

Challenge

A regional bank was evaluating a loan to a private equity group that was purchasing a company. The bank was not comfortable with the acquisition candidate’s stated revenue stream as presented by the seller. They engaged Skoda Minotti’s Transaction Advisory Services Group to investigate.

Solution

Our team reviewed the contracts and other revenue sources for validity for the proceeding three years.

Based on this analysis, we were only able to find support for half of the revenue as stated. We then found, isolated and tested the remaining discrepancies.

We took the results of these tests back to the bank for review as part of their decision-making process.

Results

Our team reviewed the contracts and other revenue sources for validity for the proceeding three years.

Based on this analysis, we were only able to find support for half of the revenue as stated. We then found, isolated and tested the remaining discrepancies.

We took the results of these tests back to the bank for review as part of their decision-making process.

Related Case Studies

  • Bank Field Auditing Case Study 2 - Reviewing a Loan Applicant’s Receivables

    Bank Field Auditing Case Study 2 - Reviewing a Loan Applicant’s Receivables

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