Due Diligence for Lenders

Quality of earnings analysis that reaches beyond the reported financials.

Transaction financing can't get done without a reliable quality of earnings analysis. As a lender, you need confidence the earnings and cash flow will be sufficient to service your debt.

In today's changing and competitive environment, lenders rely on RSM for quality of earnings reports and related due diligence. Our professionals look beyond the reported financial statement numbers and help identify potential issues. We can also provide ongoing monitoring.

You choose from a range of due diligence services that can include:

Pre-loan and refinancing due diligence
Includes insights into earnings, quality of working capital and analysis of key assets, liabilities and contingent liabilities. It can also include analysis of:

  • Larger customer additions or losses
  • Customer and product line profitability
  • Revenue recognition
  • Operating expense analysis
  • Capital expenditures and future capital expenditure plans

Your analysis of the borrower's business focuses more heavily on earnings and operational cash flows than does a field exam of the borrower's collateral. Pre-loan due diligence often complements a collateral field exam.

Reverse due diligence (Post-acquisition)
Provides you with insights into the company's performance in achieving the targeted post-sale EBITDA and expected cash flows, and highlights where profitability and cash flow fell short of plans in a troubled credit situation. We also evaluate compliance with loan covenants and agreements

Troubled loans or loan work-out reviews
RSM professionals offer guidance on recovery plans, collateral and profitability analysis, and an assessment of the borrower's financial position and potential opportunities. 

With RSM, you receive far more complete information than historical financial statements can provide and a broader business perspective than a collateral exam alone. And for complex business acquisitions, our lender analysis incorporates our proven transaction methodology.

Work with a highly responsive, industry leader
RSM professionals have guided middle market clients through literally thousands of transactions and represented countless lenders and private equity funds during the due diligence process. Within the industry, we're known for responsiveness, time-tested methodology that includes a look at leading indicators, and custom reporting.

It takes extensive knowledge and experience to be regarded as an industry leader. We know. We are one.

Let us take you behind and beyond the numbers―contact RSM today.

How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or

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Michael Grossman
National Practice Leader