Hedge Fund

Hedge Fund

Brief Overview

The sub-prime lending industry had been a growth industry and many financial institutions started divisions or acquired companies that specialized in this type of financing. The stock of companies in this industry was on the rise at that time.

 

Situation

HF had built a sub-prime lending company that it planned to take public. In its second year of operations, the company’s CPA firm refused to provide an unqualified opinion after its audit. Without 3 years of audited financials with unqualified opinions, it was unlikely that the company could go public.

 

Why Goff Associates, Inc. (GAI)?

GAI is recognized as an industry expert in sub-prime lending with expertise in problem solving and turning around organizations.

 

Results

GAI conduct an initial review of the financials and operations. GAI met with the CPA firm and presented them with an action plan to clean up the books. The CPA firm agreed that once the action plan was completed it would audit the financials again.

 

GAI immediately brought in a team of experts to clean up the books and records of the company. Once completed, the CPA firm returned, conducted their audit and provided the company an unqualified opinion.

 

After the audited financials were obtained, GAI assisted the company in reorganizing their operations to make it “Best-in-Class”, assisted in the implementation of a marketing strategy that increased volume by 400% to $60 million. The company achieved a $2 million in profit by implementing GAI’s plans, whereas it had lost money up until that point.

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