Success story:
Finding incorrect indirect cost allocations

Buy-side due diligence


  • Client was negotiating the purchase of an engineering firm that provided services to the U.S. Navy.
  • The Target had a large percentage of cost plus contracts, and historical indirect rates were consistently less than provisional indirect rates.


  • Confirm the inception to date liability for billings in excess of costs incurred.


  • Pipaya analyzed and compared historical accounting records, and DCAA incurred cost submissions to quantify the liability.
  • Our analyses proved the liability was 70.2 percent higher than the accounting records indicated. This difference was equivalent to 12.3 percent of the current purchase price.
  • Additionally, our process uncovered the cause of the discrepancy—an accounting systems conversion that did not carry forward legacy contract information into the new system.


  • The Buyer used this data to renegotiate terms, especially as they related to holdbacks.
  • The Buyer ultimately walked away when the Seller was unwilling to accept these terms.

Maybe the company you’re thinking about buying has made a mistake in their books? Pipaya will help you sniff out where there may be potential problems.

Learn More

Success story:
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.

The proper due diligence can make or break an acquisition. Pipaya will help you have full confidence that you can move forward with the purchase.

Learn more

Other Success Stories

success stories

  • Quarterback the sale
  • Invisible resources to fill the gaps
Sell Side M&A

Financial accounting
success stories

  • Fix the systems damage
  • Interim, seamless, on-demand CFO