Each deal is unique and has its own set of terms and offers various risks and rewards. Assure Professional founders have led due diligence engagements across a variety of industries with a total transaction value in excess of $2B. As soon as we are engaged, we will work to acquire an in-depth knowledge of the various factors related to your transaction and will customize our procedures to address the key aspects of your deal.
Quality of Earnings and Due Diligence
- In order to assess the Target's Quality of Earnings we perform a robust analysis including the following key components:
- Proofing Management's adjustments and ensuring they are appropriate and supportable (we tie to actual supporting evidence.)
- Robust income statement analysis including trend and variance analysis.
- Customer sales analysis (evaluate for trends/concentration/customer churn etc)
- Margin analysis
- Operating expense analysis – as considered necessary ensure expense reported aligns with underlying agreements, etc.
- Payroll reconciliation
- Proof of revenue (within 1% of reported sales).
- Balance sheet analysis.
- Ensure completion of significant account reconciliations
- Analysis of capital expenditures
- Analysis of accounts receivable, accounts payable and other current accounts
- Equity rollforward
- Discussion of identified US GAAP (generally accepted accounting principles) exceptions.
- Historical and current working capital assessments.
- Assess prior audit results (if applicable) including any unrecorded adjustments.
- Assessment/discussion on Target current accounting/finance personnel and perceived improvement needed.
- Customized tax diligence (as requested)
- Quality of Forecast (as requested)
- All of the above procedures assist us in generating our own due diligence adjustments providing comfort that you have a robust understanding of the Target’s normalized earnings.
- Unlike many other firms who utilize lower level, inexperienced staff to conduct the actual QofE analysis, all Assure engagements are managed by Chris Fameree, Assure Managing Partner. While assisted by a team, Chris will be involved in all facets of the engagement including i) Understanding transaction structure/terms ii) Understanding transaction value proposition (from client perspective) iii) diligence scope iv) schedule build out (yes Chris will actually build schedules and perform procedures) v) financial analysis and vi) report writing.
- Top tier firm talent at better economics
- We certainly aren’t perfect but we work to inform you of potential “deal killers” and other significant items as we identify them (i.e. as real time as possible). This allows your firm/team to make decisions as we progress to save time and money. We will never hand you a report with significant issues we haven’t discussed beforehand.
- We think through the transaction and generate a robust list of “Other Considerations” that provide our opinion on risks/strengths of the deal.
- We give our opinion on the deal. Yes - you can ask us what our thoughts are, and we’ll be honest about how we view the transaction.
- We will sign our reports when completed.
- We will also provide a solution where we will generate a customized reporting/metric package post close.
We want to be your partner. For additional information please Contact Us!
You can also email Chris directly at email@example.com or call him at 704-351-5509.