Tiger buys MNT to expand ABL collateral checks

Tiger Group has acquired California-based MNT Consulting to expand its collateral examination and valuation services for asset-based lenders, strengthening its ability to assess the assets supporting commercial credit facilities across the United States.

The acquisition, announced on 9 November, combines Tiger’s existing appraisal, field examination, advisory and asset disposition activities with MNT’s specialist experience conducting lender-focused financial examinations.

MNT provides field examination services to banks, commercial finance companies and other lenders. Its work supports the assessment of borrowers and the assets used to secure financing.

The transaction is relevant to the asset-based lending market because collateral examination is a critical part of determining the availability and reliability of funding against receivables, inventory and other business assets.

Unlike conventional corporate lending, where credit decisions may rely heavily on cash-flow forecasts and enterprise value, asset-based facilities place considerable emphasis on the quality, eligibility and recoverability of pledged assets.

Field examinations help lenders identify discrepancies between reported collateral and the assets that can legitimately support borrowing.

In receivables finance, this can involve reviewing debtor balances, collections, credit notes and dilution trends to assess whether invoices included in a borrowing base satisfy the lender’s requirements.

Inventory examinations may focus on stock valuation, ageing, turnover and the ability to realise value if a borrower experiences financial difficulties.

By bringing MNT into its existing operations, Tiger expects to increase its capacity to conduct these assessments and offer a wider range of services across different industries and collateral categories.

The company said clients would gain access to an integrated platform combining field examinations with valuations, transaction advisory services and asset monetisation capabilities.

Ryan Davis, Tiger’s chief operating officer, described the acquisition as an important step in expanding the firm’s field examination practice.

MNT founder My Thai will join the enlarged business, with Tiger stating that existing client engagements, relationships and service teams will continue without interruption.

The purchase consideration, MNT’s annual revenue and the number of employees transferring were not disclosed.

The acquisition comes against a backdrop of heightened attention to collateral quality and monitoring standards in secured lending.

For lenders financing receivables and inventory, the commercial significance lies in having sufficient independent examination capacity to assess borrowing bases, identify deterioration and support lending decisions.

The transaction expands Tiger’s collateral diligence platform, although the extent of any resulting increase in examination activity has not yet been quantified.