Virtual CFO
M&A due diligence support
Financial due diligence support prepares a US business's data room, quality-of-earnings schedules and working capital analysis for a buy-side or sell-side deal, so the financial questions a buyer's team asks are answered from clean, sourced records instead of assembled under deal-timeline pressure.
13-week cash forecast
Illustrative client · August 2026
USD
- Cash today
- $244,220
- Lowest week ahead
- 239,800
- Largest outflow
- Payroll, 46,300
Illustrative. An example of the document, not a client's figures.
What diligence support means here
Financial due diligence in an M&A deal runs on a request list: historical financials, add-back schedules, working capital detail, customer concentration, related-party transactions. We build and organize that material from your books, ready for a buyer's team, their accountants or an outside quality-of-earnings firm to review.
Normalized earnings and add-backs
A key deliverable is an adjustment schedule that walks from reported earnings to a normalized figure: owner compensation above market rate, one-off legal or consulting fees, a discontinued product line, non-recurring repairs. Every adjustment is documented and sourced back to a specific transaction or invoice, since an unsupported add-back is the fastest way to lose credibility with a buyer.
Working capital and the closing peg
Most deals include a working capital target set at closing, calculated as an average over a trailing period. We build the trend analysis behind that target and the proposed peg calculation, which is often one of the more contested numbers in a deal because it directly affects the price adjustment at close.
One side of the table
We work for either the buyer or the seller on a given transaction, not both, to avoid a conflict of interest. We prepare the underlying schedules and support materials; a formal quality-of-earnings review issued independently is typically produced by an outside firm engaged for that purpose, and we coordinate directly with that firm and your deal counsel. This pairs closely with exit-readiness work done ahead of a sale, which is the same diligence lens applied before a deal is even underway.
Questions
Frequently asked questions: M&A due diligence support
Do you produce the actual quality-of-earnings report?
We prepare the underlying schedules, adjustments and supporting data. A formal QoE report issued as an independent third-party review is typically produced by an outside firm engaged for that purpose, and we work directly alongside them.
How quickly can a data room be assembled once a deal starts moving?
It depends heavily on how current your books already are. A business with clean, closed monthly books can often have a first-pass data room ready in under two weeks; one with backlog needs that cleaned up first.
Can you support us on the buy side if we are acquiring another company?
Yes. We support buy-side diligence, reviewing the target's financials, add-backs and working capital trend on your behalf, alongside your deal counsel.
What if the seller's books are not in good shape?
That is common. We work through what exists, flag gaps clearly rather than papering over them, and help reconstruct the missing pieces where the underlying source documents still exist.
What does m&A due diligence support actually include, month to month?
M&A due diligence support covers financial data room assembled from your books, arranged to a standard due diligence request list, along with a quality-of-earnings style adjustment schedule (add-backs, one-off items, normalized EBITDA). The work runs inside Excel, Google Sheets, QuickBooks Online, NetSuite or Sage Intacct, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
Do you perform the quality-of-earnings report itself?
We prepare the underlying schedules and support materials. A formal QoE report is typically produced by an outside firm engaged for that purpose; we prepare the underlying schedules and can work alongside them.
Can you support both sides of a deal?
We work with either the buyer or the seller, not both on the same transaction, to avoid a conflict of interest.
How fast can a data room be assembled?
It depends on how current your books already are. Businesses with clean monthly closes can usually have a first-pass data room ready in under two weeks.
What software works with m&A due diligence support?
M&A due diligence support runs inside Excel or Google Sheets, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
Related services
- Virtual CFOExit readinessA review of what a buyer's diligence team will see in your books, done before you go to market, so surprises get fixed on your own timeline instead of theirs.
- Virtual CFO13-week cash flow forecastA rolling week-by-week cash forecast that shows what is coming in, what is going out, and where the next 13 weeks get tight.
- Virtual CFOFractional CFOA senior finance lead who works your numbers on a part-time basis: monthly reviews, board and investor prep, and a second opinion before a big decision.
Industries
- ManufacturingBookkeeping for small and mid-size manufacturers tracking raw materials, work in process and finished goods inventory.
- Professional servicesBookkeeping for professional service firms such as engineering, architecture and IT consulting billing clients by project or retainer.
- Agencies and consultanciesBookkeeping for marketing agencies, design studios and consulting firms billing clients on retainers and project fees.
- Construction and job costingBookkeeping for contractors and builders who need cost and profitability tracked by job, not just by month.
- Medical and dental practicesBookkeeping for medical and dental practices reconciling insurance payments, patient billing and payroll.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.