CLIENT: Logistics Industry

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

Commercial Dock
Key Insights

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

CUMULATIVE EBITDA TO CUMULATIVE OPERATING CASH FLOWS
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