Case Study
Acquisition Diligence
- Matthew Edwards
Engineering
INDUSTRY
40
EMPLOYEES
$7M
ANNUAL REVENUE
Background
Our client was acquiring a company in the engineering consulting space and needed financial and operational insights to ensure a smooth transition.
Objective
- Analyze the historical financial performance of the target company
- Determine an appropriate net working capital target for the transaction
- Project post-acquisition cash flows to assess short-term liquidity
- Identify operational inefficiencies, particularly in tracking the project pipeline
- Develop a post-close tracking framework to improve visibility into future opportunities
Solution
- Conducted a detailed financial review to assess revenue trends, profitability, and cash flow patterns
- Calculated a net working capital target to ensure proper deal structuring
- Modeled post-close cash flows to help the buyer anticipate liquidity needs
- Evaluated the target’s project tracking processes and identified key inefficiencies.
- Outlined a structured tracking system for pipeline management post-acquisition
Provided the buyer with financial clarity and operational insights, ensuring a well-informed acquisition and a smoother post-close transition.
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