When a shareholder dispute arose between stakeholders of a steel fabricator/erector company, the senior lender engaged MCA Financial to verify the company’s collateral. Within a short timeframe, MCA needed to authenticate the physical plant, accounting, and finances of the company – prior to the lender advancing additional funds for payroll and vendors. The urgency required a focused response and the quick deployment of MCA’s forensic accounting experts.
The company had limited staff and data was not well organized or easily accessible. As expected, MCA’s professionals’ keen ability to communicate with company personnel and gain the trust of employees were key in attaining information and access to records and data. Our team verified the accuracy of company-produced unaudited financials, borrowing base data, assets, accounts receivable and inventory. We reconciled cash and cash activity to bank statements and scrutinized the status of current contracts. Third-party customer contracts were confirmed, unbilled amounts due on contracts were identified, and existing equipment, inventory, and operations were validated.
The senior lender hired MCA to confirm, before advancing additional funds, that the borrower’s business operations were sound and that the company’s collateral was in place. MCA’s ability to quickly strategize and deploy a talented team resulted in a clear and thorough report delivered promptly to the client.