Inside Financial Diligence and Deal Intelligence
Every screen is from the Project Saguaro sample deal, exactly as DealBasis produces it.
Every add-back tested
Each line of management's EBITDA bridge is checked against the ledger and a set of tested rules, then accepted or rejected with the reason shown.
- Pro forma and run-rate items rejected
- Income items caught when they're added back
- "One-time" costs that recur every year flagged
| Add-back | Amount | Diligence view |
|---|---|---|
| Owner compensation normalization | $206,000 | Accepted |
| Legal fees, Hendricks matter | $174,000 | Accepted |
| Run-rate impact of 2026 price increaseNot yet earned | $145,000 | Rejected |
| Employee Retention CreditIncome, not a cost | $84,000 | Rejected |
| Pro forma savings, route optimizationSoftware deploys in 2027 | $60,000 | Rejected |
| One-time consulting feesRecurs every year; no ledger support | $38,000 | Rejected |
| Inventory write-off, severance, owner expenses | $97,000 | Accepted |
| Ledger adjustments management left outRelated-party rent, non-operating income, revenue cut-off | −$246,500 | Added |
| Diligence-adjusted EBITDAManagement stated $1,942,000 | $1,350,151 | −$592K |
The working capital peg, worked out
Working capital is measured four ways from the same balance sheet lines, with a trailing twelve-month peg and the closing adjustment for the definition in your deal.
- Cash, debt and debt-like items kept out
- Monthly trend and days to collect
- Every line cited to its balance sheet cell
| Definition | Aug 2026 | |
|---|---|---|
| OperatingExcluding cash and debt | $915,415 | Selected |
| Purchase agreementAlso excluding debt-like items | $946,615 | |
| TradeReceivables + inventory − payables | $1,334,819 | |
| Closing adjustment vs the peg | +$439,530 |
Every facility tied out
Balance sheet debt is matched to the lenders' own confirmations, and any debt mentioned in the documents but never recorded is found.
- Variances between the books and the lender
- Unrecorded notes and obligations
- Debt-like items you choose to deduct from the price
| Facility | Books | Lender | Status |
|---|---|---|---|
| Revolving line of creditSun Corridor Bank | $255,000 | $255,000 | Agreed |
| Senior term loanSun Corridor Bank | $1,275,000 | $1,275,000 | Agreed |
| Equipment notes (fleet)Saguaro Equipment Finance | $243,400 | $268,900 | $25,500 off |
| Shareholder noteDale Calloway | — | $150,000 | Unrecorded |
| Funded debt, per lenders | $1,948,900 |
A committee deck that writes itself
The memo and a 19-slide deck are drafted from the evidence, with headlines that state the conclusion, a source line on every slide and talking points in the speaker notes.
- Download as PowerPoint, PDF or Word
- Present full screen from the browser
- Says plainly what the documents don't cover yet
Two workspaces: Financial Diligence and Deal Intelligence
Financial Diligence tests the numbers. Deal Intelligence turns them into a price, a risk score and a committee decision. Both work from the same record, with the source of every number one click away.
Are the numbers real?
Quality of earnings
Every add-back in management's bridge tested and accepted or rejected with a reason, ending in an EBITDA you can defend.
Working capital
Four definitions side by side, with the trailing twelve-month peg and the closing adjustment for the one in your deal.
Debt tie-outs
Balances tied to the balance sheet and lender confirmations, plus debt mentioned in the documents but never recorded.
Cash flow and cross-checks
How much of EBITDA turns into cash, and every figure in the text checked against the statements and ledger.
What is it worth, and should we do it?
Deal economics
Enterprise value and equity value at your multiple, with the sensitivity and the returns case, all on diligence-adjusted EBITDA.
Risk scoring
Over 30 tests run against the record, each finding with its source, rolled into a pre-LOI confidence score.
Issues and seller questions
Every finding becomes an issue with an owner, and the questions to put to the seller are drafted for you.
Committee readout
The memo and a committee deck drafted from the evidence, ready to present or download as PowerPoint, Word, PDF or Excel.
Built for the people who screen deals
Anyone who has to decide, before the LOI, whether a company's numbers hold up.
Private equity deal teams
Screen more CIMs, put the same tests on every deal, and walk into committee with a memo and deck already drafted.
Independent sponsors and searchers
Get a diligence team's first pass on a lower-middle-market target before you commit to a full quality of earnings.
Corporate development
Test an add-on's numbers against its own ledger and balance sheet before the business case goes to the board.