Assessing quality of earnings and significant balance sheet accounts require exceptional technical and analytic proficiency, as well as the expertise and discipline to hyper-focus on critical issues facing a potential acquisition or investment.
To that end, FML reviews a given company’s financial performance over a relevant period with a concentration on:
- Revenue and expense recognition policies, including significant revenue contracts, as applicable
- The impact of non-recurring revenues, costs or other transactions
- Significant reserve accounts
- Working capital requirements, including debt service
- The quality of overall financial statements and financial reporting process, including any significant historical or audit adjustments
- Assessing the business’ internal control environment and its impact on the financial reporting process
- The goals and objectives of the business, including impacts of any potential post-transaction strategies
