The CFOx Transaction Services team supported a Denver-based private equity firm with Buy-Side Quality of Earnings (QoE) procedures for a Georgia-based propane distribution and servicing target business.

CFOx performed a comprehensive assessment of the target’s financial performance to help our client evaluate historical results, identify transaction risks, and validate the overall earnings and net working capital profile. As part of the engagement, CFOx delivered in-depth Quality of Earnings, Net Working Capital, and Net Debt analyses to assist the buyer in understanding normalized financial metrics and balances to be included in the Purchase Agreement.

In addition to the core QoE procedures, including a Proof of Cash analysis, Payroll and Tax Reconciliations, and Accounts Receivable (AR) and Accounts Payable (AP) balance analyses, CFOx also completed several supplemental analyses around sales and purchases volumes and historical propane prices to provide additional insights on the target’s historical gross margins and exposure to commodity price fluctuations.

All work was completed in accordance with GAAP and equipped our client with thorough, data‑driven insights, and a clear and reliable financial picture to support informed transaction decision-making.

If you would like to learn more about our Transaction Services, please reach out via email (info@cfoxadvisory.com) or schedule a call directly on our Contact Us page.

TS Services Provided:

• Diligence on Targets
• Quality of Earnings