LCS Forensic Accounting & Advisory: Deep Due Diligence for Serious Dealmakers
When the stakes are high and the deal is complex, you need a due diligence partner with the depth, experience, and forensic mindset to uncover what others might miss. LCS Forensic Accounting & Advisory, a Houston-based firm listed on VerSquare.com, brings exactly that to the table. Recognized as a Top 10 Transaction Advisory firm in 2023 and specializing in transactions between $5M and $100M, LCS operates at a level of sophistication that sets them apart from typical QoE providers.
In this comprehensive review, we’ll examine LCS’s capabilities, their forensic accounting edge, who they serve best, and whether they’re the right fit for your next transaction.
What Makes LCS Different: The Forensic Advantage
The word “forensic” in their name isn’t just branding—it’s a fundamental differentiator. Forensic accounting is the discipline of investigating financial records with a level of skepticism and rigor that goes beyond standard audit or review procedures. For M&A due diligence, this translates to:
- Deeper investigation: Forensic accountants are trained to identify fraud, manipulation, and misrepresentation—skills that are directly applicable to evaluating a target company’s financials
- Evidence-based analysis: Every finding is supported by documentation and analysis that can withstand scrutiny from opposing parties, lenders, and legal counsel
- Skeptical mindset: While traditional QoE providers verify and normalize, forensic accountants actively look for what’s wrong, hidden, or misrepresented
- Litigation readiness: If a deal goes sideways post-closing, forensic accounting findings can support legal remedies including purchase price adjustments and indemnification claims
Core Services
LCS Forensic Accounting & Advisory provides a comprehensive suite of transaction advisory and forensic services:
Buy-Side Due Diligence
- Quality of Earnings analysis: Comprehensive examination of the target’s historical and projected earnings
- Working capital analysis: Detailed assessment of normalized working capital needs and peg calculations for purchase agreements
- Revenue and expense deep dives: Granular analysis of revenue sustainability, customer concentration, and cost structure
- Risk assessment: Identification of financial, operational, and compliance risks that could impact deal value
- Net debt analysis: Ensuring all debt and debt-like items are properly identified and accounted for in the transaction
Sell-Side Due Diligence
- Sell-side QoE preparation: Proactive identification of issues that will arise during buyer diligence
- Financial statement preparation: Ensuring books are clean, organized, and ready for scrutiny
- Data room preparation: Organizing financial documentation for efficient buyer review
- Adjustment defense: Preparing responses to anticipated buyer adjustments
Forensic Accounting Services
- Fraud investigation: Identifying and quantifying fraudulent activity
- Dispute resolution: Financial analysis supporting litigation and arbitration
- Post-acquisition disputes: Supporting purchase price adjustment claims and earnout disputes
- Insurance claims: Quantifying business interruption and other insured losses
The $5M–$100M Sweet Spot
LCS’s focus on transactions between $5 million and $100 million positions them in the true middle market—above the micro-deal space where lite QoE providers operate, and below the upper middle market where Big Four and large advisory firms dominate. This sweet spot is significant because:
- Complexity warrants depth: Deals in this range often involve multiple entities, complex revenue recognition, significant capital expenditure decisions, and sophisticated financial structures
- Stakes are material: A 10% error on a $50M deal is $5M—enough to justify comprehensive forensic-level diligence
- PE and institutional buyers: This deal range attracts private equity firms, family offices, and institutional buyers who expect rigorous, defensible analysis
- Competitive pricing vs. Big Four: LCS can deliver Big Four-quality work at boutique firm pricing, which is compelling for deal sponsors watching their transaction costs
The Houston Base: Energy, Healthcare, and Beyond
Being headquartered in Houston gives LCS natural exposure to some of the most active M&A sectors in the country:
- Energy and oilfield services: Houston is the undisputed capital of the energy industry, with constant M&A activity across the value chain
- Healthcare: The Texas Medical Center and Houston’s broader healthcare ecosystem generate significant transaction volume
- Industrial and manufacturing: The Gulf Coast is home to major industrial operations with active buy/sell markets
- Professional services: Houston’s diverse economy supports transactions across engineering, technology, and business services
While their Houston base provides deep local market knowledge, their $5M–$100M focus means they likely serve clients nationally—deals of this size aren’t limited by geography.
Top 10 Transaction Advisory Recognition
Being named a Top 10 Transaction Advisory firm in 2023 is a significant credential that speaks to:
- Volume of completed transactions: Awards like this typically require demonstrating a meaningful deal pipeline
- Quality of work product: Recognition from industry publications reflects peer and client validation
- Market reputation: Transaction advisors are only as good as their reputation—deals are referral-driven, and this recognition amplifies their visibility
- Team capabilities: Delivering Top 10-level output requires a capable, deep team—not just one or two partners
Who Is LCS Best For?
- Private equity firms acquiring portfolio companies in the $5M–$100M range
- Strategic acquirers making significant add-on acquisitions
- Business sellers preparing for a sale process who want to identify and address issues proactively
- Buyers concerned about financial integrity of the target—especially in situations where the books seem too good to be true
- Dealmakers in complex industries like energy, healthcare, and manufacturing where specialized accounting knowledge is essential
- Parties involved in post-acquisition disputes who need forensic expertise to support their claims
Potential Considerations
- Price point: Forensic-level diligence is more expensive than standard QoE. For deals under $5M, the cost may not be proportional to the deal value
- Scope appropriateness: If you’re buying a simple service business for $2M, LCS’s forensic approach may be more firepower than you need
- Availability: Top-tier firms in this space are often booked weeks or months in advance. Engage early in your deal process
- Geographic considerations: While they likely serve national clients, confirm their experience in your target’s specific geography and industry
Our Honest Assessment
LCS Forensic Accounting & Advisory is a serious firm for serious transactions. Their forensic accounting foundation gives them an investigative edge that standard QoE providers simply don’t have. The Top 10 Transaction Advisory recognition validates their market position, and their $5M–$100M focus means they’re operating in a deal range where comprehensive diligence genuinely matters.
For private equity firms, strategic acquirers, and sophisticated buyers pursuing middle-market transactions, LCS should be on your short list. Their forensic mindset means they’re not just verifying numbers—they’re actively looking for problems, which is exactly what you want from your diligence provider.
Their presence on VerSquare.com adds another layer of validation, making it easy to compare them with other transaction advisory providers in the SMB deal ecosystem.
Secure Your Acquisition Financing with GoSBA Loans
Whether you’re financing a $5M acquisition with an SBA loan or structuring a larger deal with conventional financing, GoSBA Loans provides the lending expertise and lender network to get your deal funded.
Why GoSBA Loans Is Your Financing Partner
- 50+ lender network: GoSBA maintains relationships with over 50 SBA and conventional lenders, giving you access to competitive terms across a wide range of deal sizes and structures
- $320M+ funded: With a track record exceeding $320 million in funded transactions, GoSBA has the experience and credibility to navigate complex lending scenarios
- Free professional business plan: Every client receives a custom business plan—a $2,500 to $5,000 value—at no charge. This SBA-optimized document is a critical component of your loan application
- Completely free for borrowers: GoSBA’s services cost you nothing. Their lending partners compensate them, so you receive expert guidance without any fees
- Full-service support: From initial consultation through closing, GoSBA manages the financing process end-to-end
Coordinating Diligence and Financing
In the $5M–$100M deal range where LCS operates, financing complexity increases significantly. GoSBA’s experience with larger SBA loans and conventional financing means they can help you structure the optimal capital stack while LCS is conducting your financial due diligence. This parallel approach is how professional dealmakers operate—and it’s how you should too.
Start the conversation: Visit gosbaloans.com/contact/ to connect with a GoSBA financing specialist. Whether you’re looking at SBA 7(a), SBA 504, or conventional financing, GoSBA will match you with the right lenders for your deal.
Final Thoughts
LCS Forensic Accounting & Advisory represents the premium tier of transaction due diligence for middle-market deals. Their forensic expertise, Top 10 recognition, and Houston-based market knowledge make them a formidable partner for buyers and sellers alike. When the deal matters—and at $5M to $100M, it always matters—LCS brings the depth and rigor your transaction deserves. Pair their diligence with GoSBA’s financing expertise, and you have a powerful combination for closing your next deal successfully.
