Are you within your due diligence period? Ipsen Management Services can help by providing information that may keep you from overpaying! IMS does this by examining the business's financial statements using data analytics, proven financial ratio comparisons and mathematical models.
Financial Analysis (Fraud Examination) of a Business
Do you have your suspicions? Evidence of theft, fraud or embezzlement? Ipsen Management Services has the tools to examine your accounting records and operations. According to the ACFE 2018 Report to the Nations, the median duration of a fraud scheme is 16 months with a median loss of $108,000 (in the U.S.). So if a fraud is present in your company, it's better to catch it early rather than later!
Financial Due Diligence for Real Estate
Financial Analysis is available for developers seeking a 2nd opinion on feasibility studies or financial projections prepared by outside sources.
Discover Errors Unlike traditional "property due diligence," IMS conducts its due diligence on existing or redevelopment projects from a financial perspective. Our mission is two-fold:
- We do the research and look for what we believe to be misstatements or exaggerations of possible revenues, expenses or other numbers that might cause a lender or equity partner to part ways. - Second, IMS seeks to identify problems of fraud, misrepresentation, gross errors or other areas in need of attention.
Discover Missed Revenue Opportunities Examples of such may include seller misrepresentation and fraudulent billing by vendors. IMS surveys the project and meets with both developers and borrowers looking for missed opportunities that could possibly lead to additional sources of revenue and the reduction of unwarranted expenses.
Our Due Diligence includes: - Meeting with borrowers and developers - Surveying the project for additional sources of revenue - Examination and comparison of financial forecasts for their relevance and reliability - Reviewing the underwriting and financial Analysis - Reviewing the Property Appraisal, Estoppels, SNDAs and Closing Statements - Reviewing the Property's Books and Records "Before Sale or investment."
In addition, IMS asks "Who is the Seller?" -IMS examines the seller to determine if the "seller" owns the property or has the legal authority to convey the property, etc. -IMS answers questions as to; who has the authority to bind the seller and is the payoff sufficient to cover all liens?
Financial Due Diligence for Lenders
Reviewing Previous Audits - Ipsen Management Services starts by reviewing the borrower's previous audits looking for opinions and the number of times an auditing firm has been replaced in the past 5 years. In addition, IMS checks to see if the borrower has followed the recommendations of auditors?
Examination of Financial Statements - IMS employing Data Analytics examines Profit & Loss statements looking for significant changes. - Further due diligence calls for the examination of other financial and tax transactions that may signal unpaid obligations or pending litigation.
- IMS will will review and compare balance sheets against mathematical models looking for possible earnings manipulations as well as determining the overall financial health of the borrowing entity. - IMS examines the borrower's income projections to determine the feasibility and correctness of the risk associated with the investment.
Be aware, this assessment much like a balance sheet only provides a snapshot of a particular point in time. The dynamic nature of organizations requires routine monitoring and updating of their financial risk assessment processes in order for them to remain effective. At no time will Jerold Ipsen or Ipsen Management Services allege any wrongdoing by a specific individual.
IMS with over 20 years of years of experience and having written for more than $800 Million in projects writes business plans for those seeking SBA loans to the larger commercial real estate projects. The business plan consists of both the write-up and financial forecasts. Usual turn around time is 2-3 weeks.
- Available for International Travel -
Your privacy is respected and all matters are kept confidential!