Sprock Capital Advisory LLC
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Accounting and financial due diligence

Buyer services include:

  • Assessing the quality of revenues, earnings and cash flows
  • Assessing the strength and fairness of the reported balance sheet
  • Preparing a normalized working capital analysis
  • Validating assumptions underlying cash flow and financial projections
  • Assessing the integrity and strength of internal controls and operating procedures
  • Assessing the adequacy of accounting and financial staff
  • Identifying other issues affecting valuation, business risks, and integration
 
Our findings are documented in an easy-to-read written report or can be delivered verbally.  We allow our reports to be shared with lenders, co-investors and other third parties.

Our typical approach to a due diligence assignment includes:
  • Understanding the client's investment thesis
  • Identifying key assumptions and validation matters
  • Giving early priority to deal killers and validation of key assumptions
  • Communicating on a timely basis
  • Preserving productive relationships with lenders, co-investors and target management
  • Working seamlessly with other diligence teams and advisors

 
Sell-side Quality of Earnings reports
  
We provide both branded and unbranded sell-side quality of earnings reports.


Sell-side preparation services
 
We bring an independent perspective of how potential buyers and their diligence advisors will likely view a seller's accounting and financial information.  We then help implement recommendations that are designed to:
  • Maximize the sales price
  • Increase the likelihood of a successful sale being consummated
  • Shorten the length of the sale process
Working in conjunction with a seller’s investment banker, we typically:
  • Identifying key assumptions and validation matters
  • Identify earnings normalization adjustments, including developing a compelling rationale and support
  • Plan for the net working capital settlement process
  • Assist with financial projections
  • Prepare and maintain data room documents
  • Draft the accounting provisions of the purchase agreement
  • Assist with the post-closing determination of working capital balances

 

 
Special services

Other services we provide include:

  • Closing date working capital settlement assistance
  • Post-acquisition accounting integration assistance
  • Opening balance sheet preparation
  • Data mining
  • Portfolio company reviews and assessments
  • Financial statement audit preparation

 

 

 

 

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