INDEPENDENT BUY-SIDE FINANCIAL DUE DILIGENCE

Buying a Business? Know the Earnings, Value & Financing Before You Close.

Buying a business requires more than reviewing the seller's financial statements. You need to understand sustainable earnings, determine whether the asking price is supported, and evaluate whether the acquisition can cover debt service and ongoing cash requirements.

Business Valuation Advisors, Inc. combines CVA®-led Quality of Earnings, independent business valuation, and acquisition financing analysis to help buyers make informed decisions before closing.

Know what it earns. Understand what it's worth. Test whether the financing works.

Schedule an Acquisition Consultation View Representative Analysis

Three Financial Questions Every Business Buyer Must Answer

Earnings Quality, Independent Valuation & Acquisition Financing

A business can report attractive earnings but still be overpriced, difficult to finance, or vulnerable to cash-flow problems after closing.

BVA's acquisition analysis evaluates three distinct financial questions. Together, these assessments help buyers distinguish the seller's reported performance from sustainable earnings, supportable business value, and the financial requirements of the proposed transaction.

01 / QUALITY OF EARNINGS

Are the Earnings Reliable?

We assess the quality and sustainability of reported earnings, including adjustments that may overstate or understate the financial results available to a buyer.

WHAT WE EXAMINE

  • Reported EBITDA and SDE normalization
  • Seller add-backs and owner compensation
  • Revenue quality and cash verification
  • Customer concentration and trends
  • Working capital and capital expenditures

BUYER DECISION

Which earnings adjustments are supportable, and what financial risks require additional attention?

 Explore Quality of Earnings Analysis 

02 / BUSINESS VALUATION

Is the Purchase Price Supported?

We develop an independent assessment of business value using relevant market evidence, economic assumptions, and the normalized earnings established through financial analysis.

WHAT WE EXAMINE

  • Normalized earnings and future cash flow
  • Comparable private-company transactions
  • Income and market valuation approaches
  • Business-specific growth and risk
  • Enterprise-to-equity value reconciliation

BUYER DECISION

What value is independently supported, and how does it compare with the proposed purchase price?

 Explore Acquisition Valuation Services 

03 / ACQUISITION FINANCING

Can the Financing Work?

We assess whether projected cash flow can support the proposed financing, necessary reinvestment, and ongoing operating requirements under reasonable assumptions.

WHAT WE EXAMINE

  • Purchase price and sources and uses
  • Debt service and DSCR
  • Buyer equity and working capital needs
  • Maintenance CapEx and cash flow
  • Downside scenarios and buyer returns

BUYER DECISION

Can the proposed capital structure withstand debt payments, reinvestment, and weaker operating performance?

 Explore Acquisition & LBO Analysis 

HOW THE THREE ANALYSES WORK TOGETHER

 Reliable Earnings Inform Value. Value and Cash Flow Inform the Acquisition Structure. 

Findings in one analysis may affect the assumptions used in another. BVA coordinates the financial information across the engagement while independently evaluating the purchase-price evidence and testing the proposed financing. The results may support proceeding, additional investigation, revised transaction terms, or reconsidering the acquisition.

The specific procedures and deliverables depend on the agreed engagement scope. Quality of Earnings is financial due diligence, not an audit or assurance engagement. Financing analysis is scenario-based and does not constitute a commitment or approval by any lender.

Buy-Side Due Diligence Packages & Pricing

Independent Financial Analysis for Every Stage of Your Acquisition

Whether you are evaluating a potential acquisition before submitting a Letter of Intent or conducting financial due diligence before closing, Business Valuation Advisors offers independent analysis tailored to your transaction stage and financial requirements.

Our engagement options range from preliminary deal assessments to a coordinated combination of Quality of Earnings, independent business valuation, and acquisition financing analysis. Each assignment includes a defined scope and written fee before work begins.

OPTION 01 / BEFORE THE LOI

Pre-LOI Deal Assessment

Starting at

$950

A focused financial review to help determine whether a potential acquisition warrants further investigation.

TYPICAL DELIVERABLES

  • Preliminary EBITDA or SDE review
  • Seller add-back and compensation red flags
  • Initial purchase-price reasonableness
  • High-level financing considerations
  • Concise findings memo and buyer discussion

Scope: Preliminary assessment only; not a full QoE, verified cash analysis, or formal business valuation.

OPTION 02 / EARNINGS VERIFICATION

Standalone Quality of Earnings

Starting at

$2,950

Independent financial due diligence evaluating the reliability and sustainability of reported earnings.

TYPICAL DELIVERABLES

  • Historical financial-performance review
  • Normalized EBITDA / SDE reconciliation
  • Seller add-back and owner-compensation analysis
  • Targeted cash and revenue-quality procedures
  • Working capital and financial-risk findings

Scope: Focused QoE report; detailed transaction-level Proof of Cash and extensive financial reconstruction require separate scope.

OPTION 03 / EARNINGS + VALUE

QoE + Independent Valuation

Starting at

$4,950

Combines earnings verification with a separately documented business valuation to assess whether the proposed purchase price is financially supported.

TYPICAL DELIVERABLES

  • Focused Quality of Earnings report
  • Separate CVA®-led business valuation report
  • Appropriate market and income-based analysis
  • Enterprise-to-equity value reconciliation
  • Purchase-price comparison and findings discussion

Scope: Includes a defined-scope independent valuation; comprehensive acquisition financing and buyer-return modeling are not included.

OPTION 04 / INTEGRATED BUY-SIDE ANALYSIS

Acquisition Decision Package

Starting at

$6,450

Our complete buyer-focused service combines Quality of Earnings, independent business valuation, and acquisition financing analysis within one coordinated engagement.

TYPICAL DELIVERABLES

  • Focused Quality of Earnings report
  • Separate independent CVA®-led valuation
  • Acquisition sources and uses of funds
  • Debt-service coverage (DSCR) and cash-flow model
  • Buyer-equity and working capital requirements
  • Downside sensitivities and financing alternatives
  • Integrated findings discussion

Buyer benefit: Understand what the company earns, evaluate its value, and test whether the transaction can support its debt and ongoing cash requirements.

HOW ENGAGEMENTS ARE PRICED

 Transparent Starting Fees. Clearly Defined Scope. 

Starting fees apply to straightforward, single-company engagements with reasonably organized financial records. Every acquisition is different, and BVA provides a written scope, deliverables, timeline, and fixed-fee proposal before beginning work.

FINANCIAL COMPLEXITY

Accounting-record quality, number of bank and credit-card accounts, revenue recognition, and the periods requiring analysis.

TRANSACTION COMPLEXITY

Multiple companies, inventory, construction WIP, seller financing, ownership arrangements, and complex acquisition structures.

EXTENDED PROCEDURES

Full Proof of Cash, detailed transaction testing, expedited deadlines, or additional lender-specific requirements.

WHAT TO EXPECT

For a full QoE engagement, BVA typically requests approximately 24 months of financial records, including statements for relevant business bank and credit-card accounts, supporting accounting detail, and applicable tax returns. The records requested and procedures performed depend on the agreed assignment scope.

Fees shown are starting prices and are not guaranteed quotes. Quality of Earnings is financial due diligence rather than an audit, review, or assurance engagement. Independent valuation conclusions are not contingent on a transaction closing or reaching a desired purchase price. Financing analysis does not constitute lender approval, and buyer-directed reports may not satisfy separate lender engagement or reporting requirements.