The first step we utilize in this process is to have one of Diligentiam’s Bank Workout Strategy Advisors meet with the Borrowers and gain an understanding of the business. We will then determine what the business looked like when the loan was made, identify any changes that may have occur since the borrowing of the loan and initiate a Green Flag Assessment process which will determine the areas of potentially hidden money.
For example; there may be some asset and expense studies done to create losses and tax credits for prior years that could reduce taxes or potentially get refunds from the treasury department for tax over payments. We will also identify any Red Flags that are blocking the company from achieving its goals.
The second step of the process is to have our workout strategy advisor walk the business to identify tangible assets, review appraisals and depreciation schedules, analyze financial statements to determine if the amount of collateral is accurate and review all loan documentation.
The third step would be to Gain understanding of what the bank’s account team used to support the loan at the time the loan was made and determine if we can increase the value of the collateral by identifying all sources of possible repayment.
The Diligentiam Tool Box
Finally, we will take action to initiate the cost reduction, tax savings and tax refund strategies we have identified immediately and develop a cash flow analysis that shows the forecasted improvement and infusion of cash into the business. This will allow the repayment process to begin.
- Investment Banker that specialize in restructuring and recapitalization
- Connections Asset Base Lenders
- Expertise in Seasonal Borrowing Needs
- Merger & Acquisitions Specialist
- Management Buyout Specialist
- Tangible Property Studies
- 1031 Exchanges
- Cost Segregation Studies
- R&D Studies
- Internationals Sales Tax Deduction Strategies (IC-DISC)
- Insurance Cost Reduction Specialist
- Vendor & Customer Contract Cost Analysis
- Business Evaluations
- Accounts Receivable Analysis
- Business Equipment Appraisals
- Lean Management & Operation Analysis
As a result of our due diligence Diligentiam’s workout strategies will ensure that smaller companies are not put out of business accidentally or unintentionally, hence avoiding instances of unneeded job loss that often result. In the past, workout strategies have been problematic and aggressive, which has created mistrust in both the bank and the borrower. This has led to bad and undesirable outcomes. Diligentium will work to ensure that all parties involved in the workout strategy achieve a favorable outcome.