The CFOx Transaction Services team supported a Michigan-based private equity firm with Buy-Side Quality of Earnings (QoE) procedures for two commercial landscaping targets. Both businesses were evaluated as potential add-on acquisitions to the PE firm’s growing national landscaping platform.
CFOx performed a comprehensive assessment of each target’s financial performance to help the client evaluate historical results, identify transaction risks, and validate the overall earnings and net working capital profile. As part of the engagement, CFOx delivered robust Quality of Earnings, Net Working Capital, and Net Debt analyses to assist the buyer in understanding normalized financial metrics and balances to be included in the Purchase Agreement.
In addition to the core QoE procedures, CFOx completed several supplemental analyses to provide additional confidence in the accuracy and completeness of the targets’ financial information. These procedures included a Proof of Cash analysis, Payroll and Tax Reconciliations, and an evaluation of the companies’ Accounts Receivable (AR) and Accounts Payable (AP) balances. All work was completed in accordance with GAAP and provided the client with a clear and reliable financial picture to support informed transaction decision-making.
Through this engagement, CFOx helped the private equity firm move forward with both acquisitions equipped with thorough, data‑driven insights, strengthening the platform’s strategic expansion efforts within the commercial landscaping industry.
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.
TS Services Provided
- Quality of Earnings (QoE) Analysis
- Net Working Capital Analysis
- Net Debt Analysis
- Proof of Cash Analysis
- Payroll and Tax Reconciliations
- AR and AP Assessment
