Quality of earnings
Buy-side due diligence and transaction support
- Client was negotiating the purchase of a Target that was unaudited and reported results on a modified cash basis.
- Target had a significant amount of non-recurring costs (“addbacks”).
- Confirm historical and forecast earnings before interest, taxes, depreciation and amortization (“EBITDA”), used in valuing the business. Produce a comprehensive stand-alone due diligence report to share with the Board and Lenders.
- Pipaya converted the Target’s modified cash basis books so they were in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
- Confirmed the quality of historical earnings and the quality of forecast earnings.
- Delivered a comprehensive financial due diligence report that validated earnings and further informed the client about the Target.
- Assisted our Client in converting Target financial records to the client’s Deltek platform, and co-developed and implemented the new indirect cost structure in the Deltek system.