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Financial Advisory
Financial Advisory Sevices include:
- Strategic Planning
- Development and Review of Business Plans
- Development of foreign sourcing business cases
- Merger and Acquisition Due Diligence
- Company and Asset Valuations
- Debt Refinancing
- Forensic and Fraud Investigations
- Expert Witness Testimony
Strategic Planning
Lake Pointe is uniquely qualified to assist its clients in planning their strategic direction. This framework serves as the “road map” for the long-term planning of a business, providing management with focus and employees with direction. Development and Review of Business Plans
Lake Pointe is uniquely qualified to design or review a company’s business plan. Key components of our plans include:
- Goals and Strategies of the Business
- Market Analysis
- Core Competencies
- Service Offerings
- Competition
- Sales and Marketing Strategies
- Quality Control
- Management Team
- Board of Advisors
- Financial Modeling
Merger and Acquisition Due Diligence 
The viability analysis process described above is perfect (as modified) for the investor who wants a businessperson’s assessment of a potential merger or acquisition candidate, particularly if the candidate is underperforming or financially distressed. The analysis will focus on the projected cash flows of the candidate as currently operating and can be integrated into the projected cash flows of the combined entities reflecting the economies of scale of a strategic combination. While not valuation experts, Lake Pointe can assist in the valuation of the merger or acquisition target and assist in the negotiations with the candidate.
Company and Asset Valuations
Company and asset valuations are generally tailored to the specific needs of our client. The following describes our recommended general procedures applied and work product supplied related to the valuation of accounts receivable, inventories, equipment and real estate:
- Accounts Receivable - Schedules provided will generally include analyses of aging (including cross aging), concentration, dilution, ineligibles, bad debt write-offs, credit memos, discounts, returns and allowances, dating, seasonality, and turnover by month. Testing procedures include phone/written confirmation and/or other proof of existence (e.g., agreeing invoices to shipping documentation). Our summary comments will include a discussion of internal accounting controls, overall quality of the receivables (including trends, collectibility, customer concentration and special terms exposure), adequacy of the reserve for bad debts, and the risks of collection in the event of corporate liquidation.
- Inventories - Schedules provided will generally include analyses of category (e.g., type, location, product line), age, slow-moving, obsolescence, shrink, balance, costing, and turnover by month. Testing procedures include test counts, agreeing costs to supporting documentation, lower of cost or market comparisons, and testing of footings and cross footings. If requested, we will also conduct or supervise physical inventories. Our summary comments will include a discussion of the internal accounting controls, overall quality of the inventories by type (i.e., raw materials, work-in-progress, finished goods, consignment inventories), adequacy of any reserves for obsolescence or shrink, and a conversion strategy in the event of corporate liquidation.
- Intangible Assets - An exit strategy for a business almost always includes the possibility of a sale of the business or product line to strategic or financial buyers. As licensed business brokers, we have the experience to quickly assess the company's market and possible value of the company's intangible assets (e.g., company/product names, customer lists, patents, trademarks). Our summary comments will include a discussion of the possible value of such assets in the event of corporate liquidation
- Cash Flow Analysis - We will perform a review of the bank reconciliations and provide a proof of cash by month, as requested (generally the last three to four months). Our summary comments will include a discussion of the timeliness of performing bank reconciliations and any unusual reconciling items.
- Analytic Reviews of the Balance Sheets and Income Statements - We will perform an analytic review of the balance sheets and income statements for the last three years to identify trends in profitability, liquidity, activity and leverage.
Debt Refinancing
Often where "lender fatigue" is present, Lake Pointe can assist a company in introducing appropriate lenders (e.g., banks, asset-based lenders, accounts receivable and invoice factors) that may be willing to “replace” existing lenders. Further, Lake Pointe will assist management in developing a presentation (with detailed supporting documentation) to assist and expedite the lender’s due diligence process.
While Lake Pointe does not raise equity captial, through its strategic partnering with select investment bankers, it is able to assist in the recapitalization of a business. Information and documentation needed in the due diligence process by investors is prepared by Lake Pointe in a presentation format that facilitates a fast track process.
Forensic and Fraud Investigations
The professionals of Lake Pointe include Certified Fraud Examiners (CFE), Certified Insolvency and Reorganization Accountants (CIRA) and Certified Public Accountants (CPA) with extensive experience in fraud investigation. Services include financial record reconstruction, fraud process identification, loss claim valuation, and expert testimony.
Expert Witness Testimony
Lake Pointe professionals are qualified to testify on a variety of issues as expert witnesses, including financially distressed company valuations, liquidation analyses, management capabilities, preference payments, fraudulent transfers, arm’s length |
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