Other Service Areas
Financial Services Support
With staff and consultants possessing financial, economic, statistical and other quantitative backgrounds, Coffey is equipped to help agencies with asset dispositions (individual and pooled) and regulatory compliance examinations; however, other financial management support is available.
Asset Disposition
Administration of Assets With An Equity Emphasis for Office of Liquidation (U.S. Small Business Administration - SBA): SBA plays a vital role in the investment in America’s entrepreneurs through its Small Business Investment Company programs (SBICs). They are non-depository, financial institutions federally licensed to provide venture capital investments to the small business community. The investments made by SBICs (in the form of equity and loans) are administered by SBA’s Office of Liquidation when those SBICs are transferred to liquidation status because of regulatory violation or the inability to repay funds owed SBA.
Coffey provided assistance in the administration and disposition of assets in which ownership had been transferred to the SBA. Negotiating and effecting settlements were the primary tasks; others involved organization and analysis, program operations, analysis and valuation, preparation of liquidation plans, provision of security for files, payments and cash collections, maintenance of all forms related to documentation, reports, research, and other administrative activities.
Financial Management
Conducted Improving Profitability Through Ratio Analysis workshop to help participants enhance their understanding of the nature, effect and importance of ratio analysis on business operations. Conducted workshops entitled Credit and Collections Management and Bookkeeping and Accounting in One Day.
Conducted seminar, Strategic Posturing for Maximum Firm Valuation, for executives responsible for strategic vision and focus on their organizations covering overall process and environmental factors influencing current and evolving markets and how existing and projected resources can be better deployed to achieve changing goals. Developed and managed cash collection program for an IT firm in which 30 percent of funds were collected in three days meeting the first month’s goals. Program was coordinated with all departments and a Big 5 accounting firm.
Financial or Regulatory Compliance Examinations
Examination of Small Business Investment Companies (U.S. SBA): Assisted the Office of SBIC Examinations in conducting examinations of Small Business Investment Companies (SBICs), venture capital companies licensed by SBA. The examinations were carried out by Coffey’s staff of expert examiners and financial analysts with management and oversight provided by a project manager and project coordinator.
New Market Venture Capital (US Small Business Administration): Assisted the Office of New Market Venture Capital (NMVC) Examinations in conducting examinations of NMVC firms licensed by the SBA under 13 CFR Part 108. In December 2000, Congress passed legislation creating the NMVC Program and made a one-time appropriation to the program to fund debenture guaranty authority and operational assistance grants. The NMVC Companies formed as a result of the law are authorized to enter into participation agreements with SBA in order to provide funds to businesses operating in designated low-income areas. The objective was to promote economic development and creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas. Coffey completed six examinations of the NMVC Program companies in one year. The examinations were conducted by a staff of expert examiners, examiners, and financial analysts with management and oversight provided by a project manager and project coordinator.
U.S. Department of Agriculture (USDA) and the U.S. Small Business Administration (SBA): Assisted (as subcontractor to Bearing Point) in the preparation of a document outlining and summarizing certain program reporting requirements of the Rural Business Investment Program (RBIP). Reporting requirements for the RBIP are set forth in both the Farm Security and Rural Investment Act of 2002, and at 7 CFR Part 4290 Subpart H. The purpose of the Program is to promote economic development and the creation of wealth and job opportunities in rural areas and among individuals living in these areas by encouraging developmental capital investments in smaller enterprises located primarily in rural areas.
Financial Transaction Advising
Transaction Financial Advisor 1998 Non-Performing Loan Sale #1 - The Small Business Administration’s (SBA) Asset Sales Program: SBA required services of a Transaction Financial Advisor (TFA) to sell secured and unsecured loans and collateral purchased in the 1998 Non-Performing Loan Sale #1. Coffey was a subcontractor to the prime contractor, KPMG.
The services provided by the KPMG team included: 1) developing a comprehensive sales plan, including a budget, timeline, schedule of events and sales plan; 2) assisting with SBA Bidders Conferences; 3) participating in weekly status meetings and such other meetings as held at SBA headquarters via conference calls and actual presence; 4) developing marketing materials such as ads, brochures, bidder packages and presentations to investors; 5) querying investors to determine how SBA could meet investor needs and maximize return; 6) participating in negotiations to close transaction with the winning bidder(s); 7) preparing reports to summarize economics of transaction and lessons learned; and, 8) assisting the Program Financial Advisor (PFA) and SBA with securing approvals from lending partners for assets in the sale. Coffey was a full team member and provided quality control and due diligence support. The loans in the transaction were issued under the SBA’s 7(a) Loan Guaranty Program and the SBA’s Certified Development Company (504 Loan) Program. Collateral for the 7(a) loans included business assets and residential and commercial real estate. Collateral for the majority of the Development Company Loans was commercial real estate, some secured by equipment. Many loans in the portfolio for sale were supported by personal guaranties. There were approximately 5,000 loans with an estimated $350 million unpaid principal balance earmarked for the loan sale.