Transactions are the lifeblood of the private equity industry and come with a variety of complicated accounting challenges. What’s more, maximizing long-term value and increasing the likelihood of success starts well before day-one of an acquisition.

Element78’s teams have been involved in or advised on hundreds of transactions. Our industry experience enables us to be your partner for the financial, accounting, and operational needs of all phases of the transaction lifecycle. At every stage, we possess the specific transactional finance and accounting skills required to account for and report the complexities accurately.

Buy-Side Diligence

The goal is to make the right acquisition for the right price. But that’s easier said than done. Our team will help assess the financial and accounting landscape of a potential target, uncovering value creation opportunities or deal breaking financial risks. We first look to understand your specific interests and budget as an acquirer, and then customize our target assessment to best meet your needs.

Our offerings include

  • Quality of earnings analysis
  • Proforma financial statement
  • Analyze cash flows
  • Management discussion and departmental leadership interviews
  • Fair value measurement
  • Identification of key business drivers, profitability trends, concentration of risks
  • Working capital analysis
  • Purchase agreement review
  • Operational due diligence
Sell-Side Diligence

A lot of value can be lost through issues that arise during the process of selling a company. By enlisting Element78 to help conduct thorough due diligence early in the sale process, the likelihood of value-killing, critical issues arising later is reduced.

Element78 has the technical accounting and finance knowledge required to examine and assist in the preparation and adjustment of financial statements. Our team ensures accounting policies meet normal business standards and improve the company’s overall financial image. They also review financial statements for potential issues relating to revenue recognition, unrecorded accruals, and quality of earnings. Through our work, we can uncover they potential concerns before buyers discover them during their own due diligence efforts, which can lead to a less than optimal deal or worse, no transaction at all.

Our offerings include

  • Quality of earnings analysis
  • Working capital analysis and strategy
  • Management adjustment identification
  • Validation of performance
  • Alignment of “business story” with financial results
  • Facilitation of due diligence inquiries
  • Closing delivery schedule preparation
Opening Balance Sheet

Business combinations are commonplace to the private equity industry and come with a variety of complicated accounting challenges. We’re here to take them on. Element78 has been relied upon by the private equity community to apply best practices to ensure these complex needs are handled successfully. Element78’s experienced team is ready to help your portfolio company work through the complex accounting and reporting needs.

Post-close Transaction Matters

Element78’s teams have been involved in or advised on hundreds of transactions. Our industry experience enables us to be your partner for the financial, accounting, and operational needs of all phases of the transaction lifecycle. At every stage, we possess the specific transactional finance and accounting skills required to account for and report the complexities accurately.

Our offerings include

  • Covenant compliance and reporting
  • Purchase price adjustments
  • Contingent consideration calculation
  • Escrow monitoring and review
  • Earn-out assessment and accounting
Integration Services

Our industry experts have deep experience in the integration process, sharpened over the course of operational integration across hundreds of transactions. We will complete the underwritten investment thesis that needs to be executed upon in order to unlock value, as developing and executing a clear plan is critical. Our team will then work side-by-side with the deal team and company management to understand the clear concerns and opportunities, and lead the execution post-close.

Our offerings include

  • Revenue enhancement
  • Cost reduction
  • Cash generation
  • Process and control improvements
  • Technology systems upgrades
  • Management upgrades
  • Risk identification
  • Roadmap for implementation

Want to speak to us about your specific needs? Contact info@e78advisors.com