Quality of Earnings (QoE) and Quality of Working Capital (QWC) Assessments
A QoE assessment is a financial due diligence process used to evaluate the sustainability, reliability, and accuracy of a company's earnings. It goes beyond traditional financial statements to identify whether reported profits are driven by core business operations or affected by non-recurring, non-cash, or aggressive accounting practices.
Unlike an audit, the objective in a QoE is reasonableness, not absolute assurance and the scope and rigor employed in performing QoE assessments vary considerably among practitioners. Limiting factors include the degree of access to the subject company's management, availability of data, the project budget, and the timeframe allotted for completing the assignment.
With the goal of providing support for $1MM to $20MM lower middle market deals, NBF has invested thousands of hours over the last three decades developing a proprietary toolkit and processes that significantly raise the bar for what can be accomplished within the constraints of smaller budgets and shorter timeframes.
NBF's work product is further differentiated by inclusion of a detailed, sixty-month, unit-based, financial projection with full analytics and a full-simulation, working Excel model that gives effect to the contemplated transaction, new capital structure, and acquirer's business plan vs. the summary, high level, 5-year forecasts typically included in QoE work products. This, among other benefits, allows us to generate highly accurate and granular cash flow forecasts under varying assumptions.
Corporate Recovery
Our corporate recovery service is comprehensive in scope, pulling together the crisis and turnaround management, budgeting, 13-week cash flows, strategic planning, valuation, M&A, negotiating, and capital sourcing services necessary to rehabilitate troubled businesses.
- Budgets & Forecasting
- 13-week Cash Flow Management
- KPI Analysis
- Operational Turnaround
- Financial Engineering
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Financial Planning & Analysis
We have invested hundreds of hours in developing CFO, a comprehensive toolkit for executing tasks frequently performed by the finance function. Our core technology raises the bar for what can be delivered within tight time frames and budgets.
- Dashboards, Scorecards, KPIs
- P&L, Balance Sheet, Cash Flow Forecasts
- Decision Support Analysis
- Monitor progress and measure effectiveness of the company's strategic plan and investments
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Financial Modeling
We endeavor to stay on the cutting edge of the latest technologies and adhere to industry best-practices in delivering our work product. The result is a work product delivered on time, within budget, and that meets or exceeds client expectations.
- Advanced Excel and Microsoft 365 skills
- Models that are easy to understand
- Automate data capture from your enterprise system
- Analyze and identify data required to support model tracking
- Identify key financial and non-financial risks and advise mitigants for those risks
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Corporate Finance
NBF offers a complete back-office financial advisory service for companies seeking to secure debt financing, raise equity capital, and buy or sell their businesses.
- Quality of Earnings (QoE) and Quality of Working Capital Assessments
- Strategies to maximize financing net worth
- Feasibility studies
- Pre-acquisition reviews
- Fnancial modeling
- M&A due diligence
- Strategic planning
- Business valuations (as client advisors in connection with a transaction)
- Finding capital.
Strategic Planning
Our planning process was developed from the work of two of the foremost planning specialists in the country: David A. Aaker, the E.T. Grether Professor of Marketing Strategy at the Haas School of Business Administration at the U of C and author of Developing Business Strategies; and Philip Walcoff, President of PWI Business Solutions and author of the Fast Forward MBA in Business Planning for Growth.
- Develop plans to materialize strategy and analyze business proposals
- Research competition to identify threats and opportunities
- Assess the company’s operational and strategic performance
- Align processes, resources-planning and department goals with overall strategy
- Provide support and insight into significant organizational changes (e.g. shift in strategic focus, mergers and acquisitions)
- Educate senior executives in making effective decisions
- Construct forecasts and analytical models
- Monitor and analyze industry trends and market changes
- Understand and shape the company’s strategy and mission
System Implementations
NBF may be engaged to provide any of several implementation services including needs analysis, specking out system requirements, software and hardware selection, vendor negotiation, data entry, training, documentation, and project management. Experience counts for a lot on these assignments and our approach is designed to maximize the likelihood of success and avoid many of the common pitfalls. We are happy to serve as the team lead or in a support capacity.
- Agile Discovery & Planning
- Sprint planning
- Needs analysis
- Design & Configuration
- System Development
- Testing
- Deployment
- Ongoing Support
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