Proof of Cash Analysis Templates

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May 15, 2023

by a searcher from Harvard University - Harvard Business School in Los Angeles, CA, USA

Currently in confirmatory diligence for a company with ~$1M EBITDA and wondering if anyone has any templates / examples of a good proof of cash analysis from bank and financial statements that they can share?

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commentor profile
Reply by a professional
from Tulane University in Portland, ME, USA
I am biased but would strongly suggest hiring a financial due diligence expert like myself redacted or through Roman's Company DueDilio to work on this for you. Experts see many M&A deals and know what to look out for. Similarly, you could learn to performyour own home inspection, but why do that when you can hire an expert in the field who knows what to look for? There are often layers of complexity that muddy the waters and make the reconciliation difficult. My advice any purchase price above $1m should include at least a proof of cash and QoE lite from an FDD expert to mitigate risks and learn more about the business.

That being said, if you are intent on doing this I am happy to dm you to send an example
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Reply by a searcher
from Cornell University in Toronto, ON, Canada
Somewhat related - if you can negotiate it, a seller note with offsets is a good way to further de-risk yourself from any potential misrepresentation of the business post-diligence.
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