An M&A firm approached Sapling to assist them in undertaking quality of earnings analysis on an identified target entity. They requested a detailed report analyzing various aspects of revenue and expenses, for diligence on the quality and value recognized in financials, and also propose adjustments to determine go-forward EBITDA that were to be used as a purchase price multiple
Some of the major expenses, directly impacting operations of the business, were investigated in detail and recomputed based on multiple other source documents to assess the reasonability of such expense during the period under analysis
Movements in cumulative EBITDA and their alignment to cumulative operating cash flows were assessed thus ensuring normal operations for the period
Sapling reported on potential risk and concern areas for the client relating to operating expenses, customer and payables aging, and quality of the balance sheet items to support the client with their detailed due diligence and negotiation process
An investment firm focused on providing growth capital has engaged us to perform a detailed review of their investment reporting software, including recommendations for enhancement of the current investment reporting process.
The company was looking for a centralized database to replace outdated software, with the ability to quickly create reports in company specific formats for compliance reporting, and to generate management insights on net asset value trends by class and over time.
