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Due diligence solutions for lending during COVID-19

During this volatile economic environment, Canada’s lenders are tasked both with understanding the impacts of the pandemic and with making critical decisions about whether the quality of earnings and projected performance of a business support a lending customer’s leverage structure.

To help you make sound, informed decisions through this process, Grant Thornton has developed a suite of solutions aligned to the risk and magnitude of lending decisions.

Full scope due diligence Quality of earnings Condensed lender diligence
Designed for high-risk, high-magnitude exposures or complex underlying business situations including: material changes in business operations, acquisitions, carve-outs or divestitures, earnings volatility, etc. Focused on the quantification of adjusted EBITDA, with supplemental analysis of a business’ financial position and working capital, and identification of key areas of risk and opportunity in assessing financial performance. Designed for lower risk exposures or time sensitive evaluations that require efficient identification of red flag risks associated with current and projected performance, as well as the current financial position of a business.

Our diligence framework – a 20/20 perspective

In a dynamic and unpredictable environment, it’s imperative that you understand the impacts COVID-19 has had on your clients’ businesses, including their customers, supply chain, employees and financial position; how management has responded with temporary and permanent changes to the business; the financial impact of these changes on reported earnings; and the bridge from a historical perspective of earnings to future performance.

Our COVID -19 diligence framework allows you to evaluate the impact of the pandemic on financial performance and gain insights into the risk exposures of your clients’ businesses in today’s continuously evolving market. Our diligence process is rooted in a robust analysis of financial information supple­mented by management discussions and augmented by our extensive experience in working with mid-market, privately-owned businesses.

A culture of collaboration

Our experts have a proven history assisting lenders, private equity and corporate clients in successfully navigating shifting economic realities. Committed to working with you, our integrated teams deliver tailored solutions, pragmatic recommendations and service value that exceeds your expectations.

To help in the way that matters most, our approach includes:

  • A strong focus on key considerations
  • Help filtering out the noise and anchoring your understanding to fact-based decision making
  • Response at the speed of your need
  • A mutually acceptable scope of work and a fee estimate, with regular communication around progress to date