Transaction Advisory

Specializing in QoE for SaaS and Software Companies

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The transaction advisory team at Maxwell Locke & Ritter has performed hundreds of Quality of Earnings (“QoE”) engagements on SaaS and other recurring revenue companies throughout the US, Canada and EMEA. We serve private equity groups, lenders, family offices, and corporate entities on both buy-side and sell-side transactions. Please reach out to let us know how we can help you.

Diverse Team Experience

The transaction advisory accounting team at Maxwell Locke & Ritter has diverse backgrounds in private equity investments, investment banking, national firm public accounting, and private company ownership. With our broad range of experience, we offer insight into quantitative accounting practices, as well as qualitative strengths and weaknesses for each target.

We deliver a client-focused approach to financial due diligence that mitigates risk and identifies key value drivers while avoiding conflicts of interest. Our tax and audit departments complement our dedicated transaction advisory services team. We have the flexibility to tailor the QoE deliverable to meet your specific needs.

Transaction Advisory Services Graphic

Transaction advisory services offered:

Adjusted MRR & CMRR
Quality of earnings and adjusted P&L analysis
Proof of Cash analysis
Working capital analysis
Tax analysis – sales tax and income tax

Types of clients served:

Private equity groups
Lenders
Family offices
Corporate acquirers

Types of transactions:

Acquisitions
Recapitalizations
Loan financing
Sell side

Target geographies served:

United States
Canada
EMEA

Financial Report Analysis

Maxwell Locke & Ritter’s QoE scope includes the following analyses:

Revenue analysis:

Adjusted MRR and CMRR
MRR momentum
New, upsells, downsells, and customer churn
ASC 606 revenue recognition for implementation, one-time, and recurring revenue

P&L analysis:

LTV / CAC
COGS headcount and expense allocation
Gross margin trends
Key drivers, EBITDA bridge, and adjusted P&L trends
ASC 340 expense recognition for commissions and other contract costs
Proof of cash

Financial Transaction Advisory

Balance sheet analysis:

Deferred revenue
Debt & debt-like items
Net working capital
AR & AP aging
Inventory analysis
Accruals
Capitalized software and other capex
Accounting procedures and controls
Related party adjustments

Tax analysis:

Federal income tax
State and local income tax
Sales and use tax liabilities
Payroll tax

For experienced assistance with financial transaction advisory in these service areas, please contact us today to schedule a consultation. We look forward to helping you make financial decisions with confidence.

Meet Our Team