Financial Consulting Services - Riveron Consulting, Riveron is a unique financial consulting firm serving middle-market private equity funds and their portfolio companies. Our mission is to help clients maximize the value of both strategic and financial transactions through buy-side and sell-side financial due diligence and other special project accounting and finance services, buy side financial due diligence, sell side financial due diligence, transaction support, normalize EBITDA, transaction integration, transaction support, financial reporting and accounting, accounting and financial, reporting restatement services, private equity services,quality of earnings, quality of assets,working capital analysis, audit preparation,acquisition integration, carve out accounting, public offering planning, forensic accounting, transaction advisory,interim financial executives, merger and acquisition services, private equity consulting consultants, Riveron Consulting, Riveron

Buy-side due diligence for middle market private equity firm

Business issue

Our private equity client has total committed capital in excess of $50 million and actively pursues investment opportunities across several industry sectors. Its management team focuses on companies with revenues between $20 million and $150 million, and that require equity capital for a variety of reasons including management buyouts, recapitalizations, and growth, among others. It has a proven track record of successfully investing in small and mid-sized companies in a wide variety of industries including business services, consumer products, and manufacturing.

Our client had a letter of intent to purchase a multi-unit retailer with $100 million in sales for combination with an existing, complementary portfolio company. The deal leader contacted Riveron at the end of the week and requested we provide full-scope financial due diligence with an accompanying report.

Riveron approach

With a short timeline to deliver our initial findings, our team of three professionals was able to hit the ground running at the target’s headquarters on Monday of the following week. We coordinated with target executives to obtain information necessary to evaluate and support the historical and projected financial position of the business. Our due diligence efforts focused on a full operational review identifying key risk factors and operational metrics, plus analyses of forecasts, the balance sheet, and working capital. Initial findings were reported to our client through daily status meetings by conference call and we further investigated other key issues identified. Our draft report was used to assist in final deal negotiations and the accompanying deal structure, and a final report was issued to complete the engagement and financing with the lender.

Benefit to our client

We were able to isolate certain issues through our detailed review of balance sheet accounts that resulted in pro forma adjustments to EBITDA for the relevant period. In addition, we highlighted certain areas of ongoing financial and operational risk. These findings were used by our client to assist in final deal negotiations and deal structure as well as frame up areas of concern for post-transaction focus.