As part of the engagement, CFOx performed a comprehensive Quality of Earnings (QoE) analysis designed to provide management and its private equity sponsor with a clear understanding of the target’s underlying financial performance. Our team evaluated historical earnings, identified non-recurring items, and helped assess the sustainability of the company’s operating results to support informed investment decisions throughout the transaction process.

In addition to the QoE analysis, CFOx advised the client on net working capital and net debt matters within the purchase agreement. Our team worked to refine working capital assumptions and evaluate debt-like obligations that could impact transaction value and closing considerations. By addressing these items early in the diligence process, the client gained greater visibility into the target’s financial position and potential areas requiring attention during negotiations.

CFOx also prepared a detailed proof-of-cash analysis to verify that reported cash activity reconciled appropriately to historical financial results. This work helped normalize non-recurring items and provided additional confidence in the accuracy and completeness of the target’s financial reporting.

Through a combination of earnings analysis, working capital diligence, net debt evaluation, and cash flow verification, CFOx delivered the financial insights needed to support a disciplined acquisition process. By proactively identifying and addressing key financial considerations, our team helped facilitate a smooth transaction process that ultimately resulted in a successful closing.

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.