CFOx recently completed a Buy-Side Quality of Earnings engagement and post-close accounting services project for a private equity fund acquiring a securities enforcement-focused media and events company.
During the diligence process, CFOx performed a Quality of Earnings analysis covering FY23, FY24, and FY25 to assist the buyer in evaluating the target company’s financial performance and accounting practices.
The Quality of Earnings analysis demonstrated our ability to move beyond traditional EBITDA adjustments by reconstructing operating performance at the event level. Our team rebuilt sponsorship and ticket revenue around actual conference dates, matched event costs to underlying events, normalized owner compensation and related-party activity, performed proof-of-cash procedures, and analyzed cash-basis accounting distortions. The result was a normalized earnings profile aligned with the true economics of the Company’s operations rather than historical billing and payment timing. CFOx also assisted in identifying key accounts for net working capital and net debt calculations and provided guidance related to working capital and indebtedness provisions within the purchase agreement.
Following the acquisition, CFOx transitioned into an ongoing accounting services role to assist management with establishing accounting processes and maintaining financial reporting.
CFOx’s Accounting Services team focused on evaluating the company’s existing accounting environment, refining the chart of accounts, documenting financial procedures and internal controls, and implementing a formal month-end close process that worked for new management. CFOx also developed a monthly financial reporting package to provide management with consistent financial information.
CFOx assumed responsibility for month-end close activities, processing banking and credit card transactions, preparing cash-to-accrual adjustments, and maintaining balance sheet support schedules. The team also managed billing and collections activities, accounts payable processes, vendor payments, and commission calculations. Our team also prepared monthly cash flow forecasts, monthly financial reporting packages, and other analyses requested by management to assist with ongoing financial oversight.
Through Buy-Side transaction advisory services and recurring post-close accounting support, CFOx assisted the client in evaluating the acquisition and establishing accounting processes to support the business following the transaction.
If you would like to learn more about our Transaction Services or Accounting Services, please reach out via email (info@cfoxadvisory.com) or schedule a call directly on our Contact Us page.
Services Provided:
Accounting Services Provided:
- Accounting Processes and Procedures
- Monthly financial reporting & accounting services
TS Services Provided:
- Quality of Earnings (QoE) Analysis
- Due Diligence on Targets
