CFOx worked with a private equity client expanding its HVAC platform through the potential acquisition of a founder-owned heating and air conditioning company. Building on prior engagements with the sponsor, our Transaction Services team delivered a Buy-Side Quality of Earnings (QoE) to inform the investment decision.

Our analysis included a detailed review of the target’s operations, accounting systems, and financial policies. The team carried out a proof of cash, customer and vendor concentration analysis, tax and payroll reconciliations, and a reconciliation of the target company’s third-party invoicing system to its accounting system. Additionally, an in-depth analysis of the company’s aged and uncollectible AR was performed to provide clearer insights into valid sales and AR. In parallel, we identified key accounts for inclusion in net working capital and net debt.

CFOx delivered a QoE report with EBITDA adjustments that the client used to evaluate the investment opportunity for acquisition consideration as an integration to its broader platform.

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
• Reconciliation Exercises (Cash Proof, Payroll, Tax, and Revenue)
• Aged Accounts Receivable Analysis
• Due Diligence on Targets