Quality of Earnings (Full-Scope FDD)
OFFERING OVERVIEW
Our most comprehensive level of financial diligence, led by former Big Four transaction services professionals. Our AI-enabled process scans every transaction and flags anomalies and EBITDA adjustment candidates, so we restate the financials to a GAAP basis with 100% transaction coverage rather than a sample, delivered on compressed timelines rather than a drawn-out report cycle. That same transaction-level detail lets us remediate the books after close, so post-close reporting matches the databook your investment was underwritten on. Investor-grade and ready for your investment committee, co-investors, lenders, LPs, and insurers.
Included capabilities
Quality of Earnings Databook
Every transaction restated to GAAP, so the databook holds up long after diligence ends. Validates the reliability and sustainability of a target's earnings; restates historical earnings to a normalized basis. The core diligence deliverable.
FDD Findings Report
One findings report your investment committee, lenders, and insurers can all rely on. Investor-grade summary of the financial diligence findings, usable by the deal team, sponsor, LPs, lenders, and insurers.
Proof of Cash
We confirm every dollar reported actually hit the bank before we build on it. Confirms bank activity reconciles to the reported financials, the baseline that validates completeness. Effectively required on every engagement.
Quality of Revenue (QoR)
Revenue restated under ASC 606, so growth numbers mean what they say. Revenue restated under ASC 606 with revenue-by-customer, MRR/ARR trends, churn and retention, and customer concentration.
Gross Profit Margin
A vendor and payroll review that catches the costs skewing your margin. Vendor and payroll analysis to confirm gross margin is correctly stated and catch costs that need reclassing.
EBITDA Normalization
We strip out the one-time noise, so you see the earnings you're actually buying. Diligence adjustments that smooth EBITDA for one-time, non-recurring, and non-business items.
M&A Advisory
Senior deal support for the questions that come up outside the standard scope. Ad hoc deal support not tied to another capability, such as purchase-agreement review and purchase-price adjustment strategy.
Data Digitization and Cleansing
We turn messy, PDF-bound financials into data you can actually diligence. Cleansing and consolidating messy or PDF-bound financial data into a usable format.
