CFOx’s Transaction Services team recently provided a Michigan‑based family office with Buy‑Side Financial Due Diligence. The client was looking to acquire a strategic retail marketing and promotions agency with long‑standing, program‑based customer relationships.
As part of the engagement, CFOx evaluated the target company’s financial reporting practices and accounting policies, with particular focus on revenue recognition. Our team assessed the sell‑side advisor’s analysis related to converting reported cash‑basis results to accrual‑basis financials, evaluating the impact on reported EBITDA to better reflect the target’s underlying earnings profile.
In addition, CFOx assisted the buyer in analyzing Net Working Capital levels and historical trends, helping assess the sustainability of Working Capital relative to the target’s operating cadence and underlying economics. This analysis also informed expectations around cash flow dynamics at close.
Through the diligence process, CFOx delivered practical, transaction‑focused insights that enabled our client to move forward with confidence, supported by a clear understanding of earnings quality and working capital requirements.
Following close, the client engaged CFOx’s CFO and Accounting Services group to help transition the newly acquired entity to GAAP‑compliant accrual accounting, streamline financial reporting processes, and establish a scalable finance infrastructure to support continued growth.
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
- Net Working Capital (NWC) Analysis
- Net Debt Analysis
- Payroll and Tax Reconciliations
- AR and AP Evaluations
