QofEs for the $1-30M SMB market | Sharing experiences from doing 100s of QofEs | Investor and business owner | Building Cayne Crossing
Feb 16, 2023 • 5 tweets • 1 min read
What does a QofE process look like? They all vary, but here's the basics
Scoping⬇️
Understand client specific needs/requirements. Look at monthly P&L, monthly BS, LOI, summary of EBITDA addbacks & other relevant info (model/CIM)
3 week process from receipt of requests⬇️
(1/4)
- Week 1 ➡️ Kickoff call, process data, complete proof of cash.
Report to client any significant concerns or gaps as we go through data
(2/4)
Nov 28, 2022 • 20 tweets • 4 min read
A Quality of earnings for searchers can save you thousands💵➡️ Here’s a breakdown of the QofE process for self-funded and traditional searchers #ETA 🧵
The QofE has become productized in the middle market and beyond.
Step down to main street and LMM and you’ll find that most firms aren’t the right fit and have no interest in working with search funds or others that aren’t serial buyers or don’t have significant capital
Nov 4, 2022 • 12 tweets • 3 min read
Cash free debt free ➡️ What does it really mean and why does it cause hang ups in so many deals? 🧵
You see this term in most transactions. Simply put, seller gets to keep all of the cash on the balance sheet at closing but they have to pay off or retain all of the debt (and "debt-like" items). Simple funds flow below, right? Lets break it down
