All Case Studies
M&A / Due Diligence2 weeks

PE firm avoids $340K working capital trap

Private EquityMid-market fundMelbourne, Australia

$520K

Issues identified

$340K

Price adjustment achieved

2 weeks

Turnaround time

Closed with protections

Deal outcome

The Challenge

A private equity firm was acquiring a $6M professional services business. The seller's accountant had prepared "clean" financials and the deal was moving fast. The PE firm needed independent financial due diligence to validate the numbers before signing.

Our Approach

  • 1Conducted quality of earnings analysis focusing on revenue recognition and cost normalization
  • 2Performed detailed working capital review including seasonality adjustments
  • 3Analyzed customer concentration and contract terms
  • 4Reviewed accounting policies and identified non-GAAP adjustments
  • 5Prepared detailed report with findings and recommended price adjustments

What We Delivered

Quality of earnings report with normalized EBITDA
Working capital analysis with peg recommendation
Customer and revenue analysis
Risk summary and deal considerations
Negotiation support documentation
"They found issues in two weeks that our accountant missed entirely. Saved us from a very expensive mistake."

Sarah M.

Director, Private Equity

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