Advisory Services

Financial Due Diligence for Better Investment Decisions

Each engagement is structured around the investment decision at hand — the business, the transaction, and the questions that matter most to the investor.

Advisory services do not include audit, assurance, tax opinions, fairness opinions, legal diligence, or certified valuations.

Quality of Earnings

Assess the sustainability and quality of reported earnings, with a focus on the underlying drivers of EBITDA and the adjustments necessary to understand normalized performance.

Review Areas

Reported EBITDA and management adjustments
Non-recurring, unusual, and non-operating items
Pro forma and run-rate adjustments
Revenue and expense normalization
Earnings trends and underlying operating drivers
Supportability and sustainability of adjusted EBITDA

Outputs

A clear view of normalized earnings and the key adjustments, assumptions, and operating factors affecting sustainable EBITDA.

Revenue & Margin Analysis

Evaluate the composition, trends, and underlying drivers of revenue and profitability to understand the quality and sustainability of historical performance.

Review Areas

Revenue trends by customer, product, service, or business segment
Customer concentration and retention
Pricing, volume, and mix
Gross margin trends and profitability drivers
Recurring versus non-recurring revenue
Period-over-period performance and emerging trends

Outputs

A clearer understanding of revenue quality, margin performance, concentration, and the operating drivers supporting the investment thesis.

Working Capital & Cash Conversion

Analyze historical working capital requirements and cash conversion to identify transaction considerations and understand the capital required to operate the business.

Review Areas

Historical net working capital trends
Seasonality and monthly fluctuations
Accounts receivable and collection trends
Inventory and accounts payable dynamics
Cash conversion and operating cash flow
Potential working capital peg considerations

Outputs

An informed view of normalized working capital, cash conversion, seasonality, and potential considerations for transaction structure and purchase agreement negotiations.

Business Fundamentals

Assess the financial and operating characteristics of the business that underpin historical performance and the investment thesis.

Review Areas

Customer and unit economics
Cost structure and operating leverage
Fixed versus variable costs
Capital expenditure requirements
Key performance indicators and operating metrics
Scalability and historical operating trends

Outputs

A financially grounded view of the business model, operating economics, and key assumptions underlying the investment case.

Risk & Red-Flag Analysis

Identify financial and operating matters that could affect earnings, valuation, deal structure, or the investment thesis.

Review Areas

Financial reporting and data-quality issues
Customer and revenue concentration
Liquidity and cash-flow considerations
Debt and debt-like items
Accounting policy and cut-off considerations
Unusual trends, exposures, and transaction-specific risks

Outputs

A focused assessment of material diligence findings and the issues that warrant further investigation, valuation consideration, or transaction protection.

Investment Decision Support

Translate diligence findings into clear, decision-relevant conclusions that help investors evaluate the transaction and the assumptions underlying the investment case.

Review Areas

Synthesis of key diligence findings
Earnings and cash-flow considerations
Key risks and investment assumptions
Transaction and valuation considerations
Areas requiring additional diligence
Decision-ready presentation of findings

Outputs

Clear, concise conclusions that connect financial diligence findings to the investment thesis, key risks, and transaction decision.

Ready to Begin Diligence?

Share the details of the opportunity and the questions you need answered.

DISCUSS A TRANSACTION Our Approach