Phoenix Transaction Advisory Services Quality of Earnings/Diligence
Phoenix Transaction Advisory Services

Quality of Earnings/Diligence

Capital markets are complex and fluid, often changing in very dynamic ways over compressed business lifecycles and timeframes.

Investors and lenders of all types are faced with the prospect of making investment decisions in an increasingly complex environment, often with shorter timeframes to close a transaction and with limited internal resources. These are the dynamics that often demand the use of third party professionals in evaluating potential investment and loan transactions.

Phoenix has many investor-related clients that require insight into a potential acquisition target that goes beyond the traditional "Quality of Earnings" report. That is why Phoenix developed a transaction advisory approach, QofEPlus+, which provides clarity to operational and organizational insights into complex investment situations.

Our clients comprise a variety of capital providers, each with their own unique transaction insight requirements, such as:

  • Private equity investors seeking insight into the quality of the earnings, synergy evaluation and management capabilities.
  • Senior asset based lenders whose credit committee desires clarity and an in depth understanding to the potential borrower’s operations.
  • Mezzanine lenders whose underwriting demands an understanding of the risks of the borrower’s potential enterprise value.
  • A blend of senior, mezzanine and private equity investors requiring insight not only for the historical earnings but a clear sense of what the financial performance of the "target" company is likely to be and what the risks and possible upside opportunities may be.
  • Unitranche lenders whose transaction will incorporate multiple positions on the balance sheet, each with its own risk assessment and thus structure and pricing requirements.
  • Hedge funds considering the purchase of debt instruments and seeking visibility into the company’s operations, the steps necessary to maximize future performance and potential risks.

The Phoenix QofEPlus+ report is often shared amongst multiple participants in the potential transaction leading to an efficient, streamlined and cost effective solution for all parties involved.

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