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Success Story - Acquisition Due Diligence for PE Firm

Helping a PE firm evaluate a target acquisition

Superior CFO Advisory services supporting successful strategic decisions

A private equity firm was assessing a potential acquisition of an oilfield services company. The target company's financial reporting needed cleaning up to properly understand the current situation. And, it was expected that restructuring would be required to unlock value. The PE firm came to Aventine Hill Partners for assistance in performing due diligence.

OUR SOLUTION

One of our CFO Advisors highly experienced in growth and turnaround modeling and energy-related industries began collaborating with the PE firm to perform a detailed analysis of the potential acquisition. The work began on-site at the target company by assessing the current state of accounting operations and records. Financial information was extracted and restructured to enable a rigorous quality of earnings analysis. Detail analysis of cash flow was performed.

Once financial reporting and analysis of the current state was considered reliable, modeling was performed to forecast the impact of specific business improvements on revenue, costs, earnings, and cash flow. Pro forma financial statements were created under multiple scenarios and presented to PE firm decision-makers. Iterations to the model were prepared based on additional options the PE firm could consider. Ultimately, a final analysis package of this potential acquisition was delivered to the PE firm for use in their investment decision.

Results

With assistance from Aventine Hill Partners' CFO Advisory services, this PE firm received an objective analysis by a CFO experienced in the target industry. The work was completed in less than a month allowing the firm to make a fully informed decision quickly and cost effectively.

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