CFOx’s Transaction Services team supported a New York‑based, private equity‑backed accounting firm platform with buy‑side financial diligence related to the simultaneous evaluation of two accounting and advisory firms as potential add‑on investments to an existing professional services platform.
Buy‑Side Quality of Earnings analyses were performed concurrently for both targets, supporting the sponsor’s broader platform expansion strategy. While both firms operated within the professional services sector, each presented distinct revenue models, cost structures, and accounting considerations, requiring a tailored diligence approach for each opportunity.
For each engagement, CFOx delivered a comprehensive Quality of Earnings and Net Working Capital analysis focused on sustainable EBITDA, normalization adjustments, and key deal considerations relevant to a growing accounting and advisory platform. Executing both QoEs in parallel enabled the sponsor to evaluate each add‑on consistently while maintaining momentum across a compressed transaction timeline.
In addition, CFOx worked closely with the sponsor to assess prospective cost savings, margin improvement opportunities, and potential growth initiatives under consideration as part of the sponsor’s platform strategy. The analyses also considered anticipated personnel and organizational changes and their potential impact on forward‑looking profitability and operating structure.
By supporting multiple contemplated acquisitions for the same private equity‑backed client, CFOx provided clear, decision‑ready insights to help inform investment prioritization and execution planning. This engagement highlights CFOx’s ability to support complex, multi‑target diligence efforts and serve as a trusted advisor to private equity sponsors investing in professional services businesses.
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.
Services Provided:
- Quality of Earnings (QoE) Analysis
- Due Diligence on Targets
- Net Working Capital Analysis
- Net Debt Analysis
- Proof of Cash Analysis
- Payroll & Tax Reconciliations
- AR & AP Evaluations
