CFOx’s Transaction Services team provided a buy-side Quality of Earnings (QoE) for a bolt-on acquisition by FSS Technologies, a PE-backed platform. The platform added The Fire Group, a fire sprinkler installation and service company, to expand its safety solutions capabilities and extend its market reach.
CFOx executed the engagement through a structured, multi-phase approach.
Phase 1 focused on validating financial integrity and underlying cash activity, including a Proof of Cash analysis, payroll reconciliation, and tax reconciliation. CFOx conducted an in-depth analysis of the operating performance for five entities, including a carve-out of one entity not included in the transaction perimeter, to provide the buyer confidence in the financial results of the business being acquired.
Phase 2 delivered deeper operational insight and a fulsome Quality of Earnings Analysis. The team analyzed gross margin by service line, validated potential synergies, and completed a percentage-of-completion analysis. CFOx also conducted a rigorous accounts receivable (AR) analysis to deliver clear insights to the client surrounding the target’s AR and Net Working Capital profile.
Finally, CFOx identified key accounts for inclusion in Net Working Capital and Net Debt calculations and advised on related considerations within the Purchase Agreement. Post-close, CFOx is actively advising the client on various items including a Net Working Capital true-up and other post-close/Opening Balance Sheet considerations.
FSS Technologies successfully closed the transaction in early spring 2026. Read the full announcement: https://fsstechnologies.com/blog/fss-technologies-acquires-the-fire-group/
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
- Percentage-of-Completion Analysis
- Net Working Capital & Net Debt Analyses
- Due Diligence on Targets
