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Pre-LOI financial analysis

Know what the earnings really are before you sign.

Sellers present an adjusted profit number. We rebuild it from the source documents, the bank statements, the ledger, the filed return, and tell you which parts hold up, which do not, and what to verify before you commit.

Typically 3 to 5 business days from the point we have the documents.

The problem

The number in the CIM is the seller's number.

Owner-operated businesses are sold on adjusted earnings, and the adjustments are prepared by the party being paid. Most are legitimate. Some are a recurring cost relabelled as one-time, an owner's salary counted twice, or money received recorded as an expense added back.

Add-backs that do not hold

Every adjustment is tested and graded by the evidence behind it. Anything undocumented is held out of the earnings figure and shown separately, rather than quietly credited.

Cash that does not match

Deposits and payments are reconciled against the books on both sides, month by month, so a revenue figure the bank never supported does not survive to the valuation.

Working capital dressed for closing

The peg is set from the whole year, not the closing balance sheet, so payables stretched or receivables collected early in the final month do not become your funding gap.

How it works

Four steps, no software for you to learn.

Tell us about the deal

Industry, size, stage, and which documents you have. We reply with whether it is a fit and what it will cost.

Share the documents

Through the data room or shared folder you already have. We do not ask you to upload anything to us.

We do the work

Figures are read from your documents, then every calculation is performed and cross-checked by our engine and reviewed by a person before it goes out.

You get the analysis

A findings-first report you can take into the negotiation, and a checklist of what to confirm with your CPA before closing.

What is in the report

Findings first, with the arithmetic shown.

  • Adjusted earnings, rebuilt line by line from the books, with every adjustment labelled by the evidence behind it.
  • Proof of cash on both the receipts and payments sides, reconciled to the books month by month.
  • Source reconciliation across the ledger, the bank statements and the filed return, with any unreconciled difference stated rather than averaged away.
  • A working-capital peg set from the full period, and the shortfall you would have to fund at close.
  • The true cost of the deal: the asking price plus the debt-like obligations that transfer with the business.
  • A diligence checklist built from what we actually found, ranked, with the specific document that would resolve each item.

What this is, and what it is not

Princely produces a QoE-style pre-LOI financial analysis. It is designed to tell you where to push, what to price differently, and what to confirm before you sign.

Princely is not a licensed accountancy firm. No audit, review, or examination under AICPA standards is conducted, and no opinion or assurance is expressed. We obtain no third-party confirmations from banks, customers or lenders, and we do not test internal controls or search for fraud.

The analysis is only as good as the documents provided, and it is prepared for your internal use in evaluating an acquisition. Have a licensed CPA confirm the findings, and counsel review the agreements, before you sign an LOI or close.

Start here

Tell us about the deal.

No documents yet, and nothing to upload. This is enough for us to say whether we are a fit, what it will cost, and how quickly we can turn it around. We usually reply within one business day.

We will only use this to reply about your deal. Do not send financial documents or account details in this form.