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 strong relationships with its private and institutional investors and quickly obtains capital on a deal-by-deal basis for acquisitions and recapitalizations. This particular client focuses its investment efforts on opportunities such as bankruptcies, turnarounds, and other challenging situations (e.g., labor issues, environmental challenges, carve-outs, etc.). Typically, the firm buys companies in industrial, heavy manufacturing, and related service industries and believes it can generate high returns on invested capital by buying distressed assets, partnering with experienced operators, and building large businesses through reinvestment of intellectual and equity capital for both organic and acquisition growth.

Our client had letter of intent to purchase a $10 million manufacturer to include as an add-on to its existing portfolio. A principal of our private equity client contacted Riveron and requested a full-scope financial due diligence engagement and report.

Riveron approach

Our team of two professionals was able to hit the ground running at the target’s headquarters on Wednesday of the following week. We coordinated with target executives and the investment broker to obtain information necessary to evaluate and support the historical and projected financial position of the business. In addition, our work focused on both a quality of earnings and working capital analysis. Initial findings were reported to our client through daily status meetings and we thoroughly dissected other key issues identified. Our draft report was distributed to our client within the required timeframe and a final report was issued to complete the engagement.

Benefit to our client

We were able to identify key issues through our detailed review of balance sheet accounts and operational information that resulted in adjustments to EBITDA for the relevant period. This information armed our client with the necessary detail to validate the historical EBITDA run rate and successfully finalize the transaction with the target’s management.