Brandlin & Associates
Brandlin & Associates NewsJuly 2013

Investing in the Digital Age


Traditional providers of debt and equity financing are investing in technology companies at an increasing pace. We recently conducted Due Diligence on three technology companies seeking debt and equity financing.  Our Quality of Earnings assessments and observations regarding operations were key to the credit underwriting process, and helped our clients assess potential risks at the target companies.  If you are considering investing in a technology company, please give us a call at (310) 789-1777.


>> Brandlin's Services

Technology for the Healthcare Industry


A national provider of information and software connectivity solutions to healthcare providers sought working and growth capital to fund existing operations and acquisitions. The target's sophisticated business operations, including several companies and services, complicated the due diligence process. 


We conducted a multi-year Quality of Earnings assessment to help our client determine whether the target's cash flow was sufficient to service the proposed debt, as well as the potential upside of equity ownership.  During our process, we:

  • Evaluated revenue recognition policies and practices
  • Identified client / customer contractual commitments
  • Evaluated accounting issues affecting current and future earnings
  • Analyzed EBITDA, segregating unusual and non-recurring items from normal operating revenues and expenses
  • Evaluated key assets and related reserves
  • Assessed financial reporting and information systems
  • Identified unrecorded liabilities
  • Determined working capital trends and needs
Manufacturing Smart Machines


A niche manufacturer of precision semiconductor testing equipment for semiconductor fabrication was in the market for a minority equity partner.  While the company seemed to have little competition and high margins, unusual accounting practices concerned our client. Through our diligence procedures, we:

  • Identified financial and operational abnormalities that skewed recurring earnings
  • Evaluated the propriety of the revenue recognition policy 
  • Discovered inconsistencies between interim and year-end financial statements
  • Identified deficient inventory management, tracking and reporting systems
  • Verified the reasonableness of non-recurring items affecting EBITDA
  • Identified potential under-reporting of out-of-state sales taxes
  • Suggested improvements to mitigate internal control deficiencies
Satellites for Connectivity


A developer of unique satellite antenna technology for commercial applications and various U.S. government agencies was seeking an equity partner to expand its research and development capabilities.  Our private equity client was interested in the potential upside of investing in new technology to fulfill the commercial sector's ever-increasing demand for improved connectivity, application support and devices.  


To help our client assess the target's historical and projected operating performance, we:

  • Identified technical issues related to the company's revenue recognition policy
  • Recast the company's revenues and related expenses using the proper method of revenue recognition
  • Vetted financial projections and recast sales backlog based on the revised revenue recognition policy 
  • Assessed the propriety, conservatism and consistency of accounting policies
  • Evaluated the net realizable value of inventory 
  • Reviewed customer contracts to identify salient issues
  • Assessed the propriety of capitalized project expenses
About Brandlin & Associates
Brandlin Logo

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.




August 7, 2013


108 W. 2nd Street 

Los Angeles, CA 90012


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 

4th Annual Conference 
April 17-19, 2013


Jeff Brandlin was a panelist with Juval Aviv and Richard Haddad presenting "Identifying Hidden Assets."  Key takeaways from the presentation were:


Plan & Verify - Don't trust your borrower's financial statements. 


Fraud - If you suspect fraud at a borrower, move quickly to secure assets. 


Commit - When fraud is discovered, it's a long, expensive road to recovery. 


Patience - The outcomes of discovering fraud can be much better than anticipated.


Brandlin & Associates



Join Our Mailing List