A Multiple Means Nothing Until You Understand The Earnings Behind It.

A Quality of Earnings goes beyond reported results to determine what is sustainable, what is repeatable and what could materially change the economics of the transaction.

Led by John Palko, CPA, CFA, our Financial Due Diligence practice brings more than a decade of Big Four deal experience together with the data and analytical depth to get beneath EBITDA, working capital and performance trends quickly.

Because the number everyone is negotiating around deserves to be understood from every angle.

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Core Financial
Due Diligence 

Quality of Earnings (QofE) analysis

Net Working Capital target analysis

Debt & Debt-like Items analysis

Forecast / projections deep dive

Business trends and bridges — revenue, gross profit, EBITDA

Financial statement commentary

Free Cash Flow analysis

Supporting
Due Diligence Services

Other

Analyses

  1. Carve-out assessments
  2. Transition Service Agreements
  3. Cost benchmarking
  4. Financial reporting environment assessment
  5. GAAP assessments
  6. Financial modeling
  7. Synergy identification

External Party

Communication

  1. External party coordination — Legal, HR, tax due diligence
  2. Bidder inquiry and due diligence support (Sell-Side)
  3. Data room population (Sell-Side)

Closing

Mechanisms

  1. Review and drafting of financial sections of the SPA
  2. Creation of NWC and cash estimates (Sell-Side)
  3. Preparation of final NWC and closing statement (Buy-Side)
  4. Negotiation of NWC Target and Indebtedness

Pre-LOI Support

With You Before the Letter of Intent

Buy-Side Phase

  1. Commentary on sell-side diligence
  2. Initial Stoplight QofE and key risk assessment

Sell-Side Support

  1. Support for deal model, management presentation, and CIM
  2. Initial high-level QofE
  3. Assistance developing pro forma adjustments

Top-Tier Firm Experience

  1. Proprietary AI and analytics stack powering every engagement, delivering Big Four depth at the speed boutiques can’t match.
  2. Practice leaders are alumni of Big Four firms, delivering institutional-grade diligence quality at a fraction of the cost.
  3. Proven track record from PE roll-ups and founder-owned businesses to complex Fortune 500 carve-outs.

Flexibility of a Non-Audit Firm

  1. Bureaucracy-light approach with faster kick-offs, more frequent updates, and greater collaboration.
  2. Free from independence constraints, capable of serving in a management capacity for a smoother sell-side process.
  3. Services beyond CPA scope, including forecasts, financial models, and pro forma adjustments, tailored for each deal.

Diligence Insights That Drive the Entire Deal Lifecycle

Our Financial Due Diligence practice does not operate in isolation. The insights we develop during diligence flow directly into our broader Blue Ops ecosystem, informing the 100-day plan, powering post-close reporting via Catalyst, and setting up the data infrastructure that defends valuation at exit.

M&A Analytics

Our integrated diligence and analytics approach surfaces key adjustments that enhance deal value and enable you to control the strategic narrative.

Finance & Accounting Operations

QofE insights directly inform the 100-day plan, driving faster integration and quicker value capture.

Technology

Diligence data flows directly into Catalyst for post-close reporting and into Compass for ongoing hold-period support. No hand-offs, no data loss, no rebuilding from scratch.

Our contacts at Blue Ops worked over the weekend on both the initial and ad hoc requests and responded promptly. The client was incredibly happy with the visualizations and datasets prepared. It freed up our time to advance other workstreams.

Joe Morris | Piper Sandler & Co.

Ready to Replace Assumptions with Facts?

Get in touch today to discuss how our Financial Due Diligence practice can support your next transaction.