Brandlin & Associates
Brandlin & Associates NewsSeptember 2012
First Capital

"I have had confidence in Brandlin & Associates' financial due diligence for many years.  Their high-quality reporting expedites our underwriting process, helping us to provide credit-worthy companies with the financing they need."

- Matthew Grimes

  EVP and Western Region ABL Manager, First Capital

Financial Statements - Art or Science?


When it comes to calculating a company's earnings, is it closer to art or science?  We often encounter budding mathematical artists at privately-held companies.  While we appreciate a nice-looking financial statement, we know that it won't stand up to third-party scrutiny and therefore limits a company's opportunities. The following recent engagements demonstrate how a simple Quality of Earnings analysis can strengthen the chemistry between a borrower and lender.  

  • Specialty Distributor 65-year old company undergoing a turnaround needed a new senior lender.  
    • We conducted a quality of earnings analysis, performed analytical review procedures on the company's interim financial statements, and provided on-going assurance advisory services.
    • We helped our client identify and negotiate with prospective lenders.
    • New financing was put in place, increasing the company's liquidity by maximizing the value of its assets and enabling it to complete its turnaround and continue to pursue its growth strategy.
  • Specialty Family & Entertainment Restaurant Chain Private lender to growing company wanted to refinance $30MM of senior and subordinated debt.  
    • We performed a quality of earnings analysis.
    • We identified EBITDA adjustments resulting from non-recurring expenses and to bring the financial statements in conformance with GAAP.
    • We evaluated and compared operational and marketing practices to best-in-class techniques and recommended management actions to improve the client's communication with its lenders.
  • Private Label & Extended Service Contract Provider:  Prospective private lenders to a national provider of private-label warranties for major original equipment manufacturers and extended-service contracts for used heavy duty trucks wanted clarity on the borrower's earnings.  
    • We assisted management in identifying EBITDA adjustments related to borrower's private equity-owned holding company, environmental remediation costs and non-recurring expenses of captive reinsurance subsidiaries.
    • We advised prospective lenders regarding revenue recognition and accounting for captive reinsurance subsidiaries, and assisted with determination of loan covenants and ratios.
If you have questions determining where the line falls between artistic financials and scientifically-sound financials, give us a call at 310-789-1777.
About Brandlin & Associates
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Brandlin & Associates is an exclusive provider of accounting due diligence, financial consulting and strategic consulting services. We pride ourselves on offering superior technical expertise, years of practical experience and unparalleled service to decipher financial and operational performance metrics. As a result, our clients are able to make informed decisions in a timely manner.


Anthony Granato Joins Brandlin & Associates
Anthony Granato
We are pleased to welcome Anthony Granato, CPA, to our team of consultants. Prior to joining Brandlin & Associates, Anthony spent ten years in public accounting focused exclusively in the areas of forensic accounting and litigation support. He began his accounting career at Deloitte & Touche in Los Angeles in Assurance and Advisory Services. 


Orange County Lending Trends


September 19, 2012

5:00 - 8:00 pm

Center Club

650 Town Center Drive

Suite 570

Costa Mesa

We are pleased to be a Platinum Sponsor of the Commercial Finance Conference of California, the trade group for commercial finance companies, factors, banks and other financing agencies engaged in the asset-based financial services industry
of California.


>> Register here 

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