Specialty lenders have become frequent M&A targets in recent years as their strong performance offers attractive returns for private equity funds and other buyers. However, failing to appropriately consider the accuracy of a specialty lender’s allowance for loan losses could turn an attractive deal sour. Our white paper, Allowance for loan losses is a key due diligence issue, offers a thorough overview of the issues involved, including:
- Legacy loan loss accounting guidance for homogenous loans
- Legacy loan loss accounting guidance for loans individually evaluated
- New credit loss accounting guidance for loans measured at amortized cost
