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We're a trusted finance partner for PE firms and their portfolio companies, working alongside deal teams from the first diligence call through to exit.
Buy-side diligence on new platform and add-on acquisitions
Portfolio company financial operations and reporting
Value-creation planning
Exit-readiness work as the hold period matures
As soon as the LOI is signed the time clock starts ticking for private equity funds to return capital to their limited partners (LP)s. We understand the pressure fund managers face to delivery above market returns to their limited partners. Time is the enemy of all deals – our team moves at the speed required to ensure due diligence is completed before exclusivity lapses. Our rigorous internal control over deliverables guarantees quality in our work and identifies blind spots as well as low-hanging fruit for EBITDA expansion.
Confirmatory Financial Due Diligence is focused on confirming the financial performance of the business as presented. Our written Quality of Earnings (QoE) report includes a proof of cash, analysis of networking capital, variance analysis of all items on the profit & loss statement as well as the balance sheet, customer analysis for risk assessment and vendor analysis for risk assessment. During our process we also assess the overall strength of the finance organization and highlight opportunities for value creation in the financial reporting process. Each engagement includes a written report and supporting data book. Our engagements can be tailored down in scope and price to provide value to your overall due diligence process.
Lower middle market finance organizations suffer from imposter syndrome. Too often accounting managers are masquerading as global controllers or even CFOs. Our team will conduct a review of the financial reporting process and assess the need for FP&A analysts. The first 100 days post-close are crucial to ensure accurate and timely financial reporting supports the thesis developed by private equity analyst deal teams. We will work to implement systems to deliver GAAP basis financial statements within 10 days of the close business. This will provide your new CFO reliable financial reporting from day one. Our engagements are flexible with the ability to start and stop on demand.
Once the dust settles and the deal is closed its time to integrate the asset into your portfolio. A purchase price allocation needs to be conducted to assign value to the underlying assets and to maximize the amortization of the goodwill deduction for tax purposes. A valuation is required to be defensible under IRS audit. Our team will conduct a valuation and provide journal entries to get the new acquisition ready for inclusion in consolidated financial statements.
Our team of experts brings decades of experience cleaning up historical financial statements and creating lead sheets for auditors thus saving your portfolio companies on expensive audit fees thousands of dollars in audit fees.
Depending on the size and industry of your new acquisition an outsourced controller function can be a massive cost reduction tool. Our team has experience providing GAAP basis financials for companies ranging in revenues of $5M-$25M. We also have the ability to augment parts of the accounting cycle whether it’s an AR/AP clerk, budgeting help or providing month-end close oversight.
