Building good working relationships

Acquisitions and Due Diligence

McClintock & Associates enjoys good working relationships with the most respected legal counsel in the industry and frequently coordinates with them on regulatory issues and acquisitions for various clients. We have advised on deals worth well over $1 billion. We can assist you with:

  • Conducting pre-purchase due diligence of compliance with Generally Accepted Accounting Principles, Title IV regulations (institutional and student), and tax reporting requirements
  • Establishing financial structures to meet the requirements of the Department of Education while minimizing the tax impact of ownership
  • Projecting ratios for opening balance sheet and future composite scores
  • Reviewing financial information, EBITDA calculations and financial trends
  • Understanding revenue transactions and appropriateness of applied accounting principles
  • Performing the opening balance sheet audit required by the Department of Education

How to Avoid a Letter of Credit After a Change in Ownership

Making an acquisition in a highly regulated industry like postsecondary education means following required procedures and obtaining approvals from multiple agencies. Often, the most significant approval comes from the U.S. Department of Education (ED) because the approval can include a requirement to post a letter of credit with ED as the beneficiary for as much as 50% of the Title IV awarded to a school for its most recently completed fiscal year.