Buy-Side Financial Due Diligence

Contact for Custom Quote | Typical Turnaround: 1–3 Weeks

When acquiring a business, the numbers you receive from the seller are only the starting point …

We dig beneath the surface of reported earnings to identify one-time items, normalization adjustments, and working capital issues that can materially affect enterprise value. The analysis is designed to mirror private equity-level due diligence — but delivered in a cost-effective, focused engagement tailored to the transaction’s size and complexity.

What’s Included:

• Quality of Earnings Review – Adjust reported earnings to reflect sustainable, recurring profitability.

• Revenue and Margin Analysis – Identify customer or product concentrations, seasonality, and volatility in gross margins.

• Working Capital Normalization – Analyze historical trends to determine a fair and defensible peg for closing negotiations.

• Cash Flow and Debt Review – Evaluate cash conversion efficiency, debt service coverage, and true free cash flow generation.

• Risk Assessment – Highlight anomalies, red flags, and deal-critical considerations that may impact valuation or structure.

Deliverable:
An Excel workbook and a concise, data-driven report (typically 10–20 pages) presenting normalized EBITDA, working capital benchmarks, trend analyses, and actionable insights — enabling you to negotiate from a position of clarity and strength.

Ideal For:
Private equity funds, search fund operators, independent sponsors, and owner-operators pursuing acquisitions in the lower and middle market who need credible financial insight before committing capital.