When presented with the opportunity to acquire two Louisiana-based companies in the industrial services sector, JMH Capital was intrigued. Service Radio Rentals (SRR) and Industrial Blind Solutions (IBS) are both leaders in providing industrial maintenance companies with two-way radio communication solutions (SRR) and isolation and hydro-test blinds (IBS) with unmatched service and response time; however, due to income tax basis accounting, numerous proposed adjustments to earnings and inconsistent internal controls, it was difficult to accurately assess each company's true cash flow and underlying value.

JMH retained Brandlin to conduct an in-depth forensic review of each company's accounting records and practices, resulting in far more than just an accurate analysis of the companies' cash flows. Brandlin spent substantial time on-site with the companies' accounting staff and management, gaining their confidence. With this came valuable insight and information. Brandlin discovered that:

• Insufficient internal controls made each company vulnerable to financial fraud.
• Sales forecasting, budgeting and expenses were poorly monitored.
• There was neither a formal bonus plan nor a vacation policy.
• Manual fixed asset tracking resulted in cumbersome and time consuming record keeping.

Armed with an accurate picture of the companies' cash flows and operations, JMH was able to complete a transaction with the seller and acquired SRR and IBS, establishing Industrial Rental Services, LLC. The information provided by Brandlin enabled JMH to get a head start on its value creation plans for the combined business. The new company has established the appropriate policies and procedures and is poised to continue its aggressive growth in the industrial maintenance industry.

JMH Capital is a private equity firm targeting investments in lower middle market companies with enterprise values of up to $100 million that deliver exceptional value to their customers. Using its significant operating resources, JMH Capital creates value through strong working partnerships with owners and management.

Brandlin & Associates is an exclusive provider of investigative accounting, financial consulting and strategic consulting services. We pride ourselves on offering superior technical expertise, years of practical experience and unparalleled service to decipher financial and operational performance metrics. As a result, our clients are able to make informed decisions in a timely manner.

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