CFOx recently worked with a middle-market investment bank and its client, a greenhouse and farm, to provide due diligence in order to transition the greenhouse to an Employee Stock Ownership Plan (ESOP).
To anticipate and prevent potential challenges during the transition, CFOx provided a Quality of Earnings (QoE). Our Transaction Services team gained an understanding of current accounting policies and procedures. This allowed us to include EBITDA adjustments and advice on net working capital and net debt analyses.
In addition to a QoE analysis, our team prepared a cash proof analysis to ensure proper cash reconciliation to historical financial activity. Our firm also analyzed customer attrition and vendor concentration and spending.
The final product was a summary report with commentary on the company’s monthly historical P&L, Balance Sheet, proposed EBITDA adjustments, and other analysis that helped the investment bank and its client perform a smooth transition.
If you would like to learn more about our Transaction Services, please reach out via email ([email protected]) or schedule a call directly on our Contact Us page.
CFO Services Provided:
- Quality of Earnings (QoE) Analysis
- Due Diligence on Targets
