Insights & Resources

In a volatile market, rising costs and shrinking margins are putting pressure on businesses to operate leaner. Cost reduction consultants offer a focused, data-driven approach to streamline expenses without compromising performance or growth. What Do…

Pursuing growth through acquisition remains one of the most direct and scalable methods to expand capabilities, gain market share, and accelerate strategic initiatives. Unlike organic growth, an acquisition-led strategy enables companies to unlock synergies, enter…

Change is an inherent aspect of mergers and acquisitions (M&A), and managing change effectively determines whether post-transaction integration will achieve its strategic and financial goals. A sound M&A change management strategy facilitates alignment between organizations,…

Thank you to everyone who joined Avant® Advisory Group and SFNet SoCal for our recent webinar, “Lessons & Warnings from the Wreckage: What a Flawed Quality of Earnings (“Q of E”) Can Teach Lenders & Investors.” We appreciated the…

Maybe. That’s typically done via agreement on the specific adjustments determined based upon either a sell-side or buy-side Q of E, which drives the valuation and ultimate purchase price Specifying a clear framework for acceptable…

These would be key recommendations: Maintain detailed records and justification for every adjustment. Be conservative and transparent; overstating add-backs can damage credibility and result in a broken deal. Consider hiring a sell-side Q of E…

A third party performed Quality of Earnings assessment (e.g., by a forensic CPA or other due diligence professional) provides an independent assessment without any emotional attachment to the add-backs. This ensures that a professional objectively…

Add-backs directly impact adjusted or normalized EBITDA, which again influence valuation. Certain adjustments may be speculative or not clearly or adequately supported, so those items may only prove out in post-transaction operations. In that case,…

Industries have certain special characteristics that oftentimes dictate what is non-recurring or recurring because of unique features of that particular industry. For example: Pharmaceutical firms typically incur substantial recurring R&D expenses. Those type of expenditures…

Common legitimate add-backs include: One-time legal or consulting fees (e.g., a one-off lawsuit, fees or other costs related to an M&A transaction, or system implementation costs). Severance costs for terminated employees that seldom if ever…

A well-executed Quality of Earnings (Q of E) empowers investors, acquirers, lenders, and other stakeholders with a clear, independent assessment of a company’s core recurring earnings. By identifying and excluding non-recurring items, determining acceptable add-backs,…

Join Avant® Advisory Group in partnership with SFNet SoCal for an insightful FREE Sponsor Webinar designed for lenders, investors, and financial professionals. 📅 Date: Wednesday, November 5, 2025⏰ Time: 12:00 PM – 1:00 PM PST About the Session This webinar will explore a real-world case…

Cash flow is a critical component of financial stability. Even profitable or high growth companies can find themselves in trouble if cash flow is mismanaged or disrupted. Whether navigating a temporary shortfall or planning for…

Post-merger integration (or “PMI”) is one of the most complex and risk-laden phases of the M&A lifecycle. Effective PMI requires more than aligning systems and personnel, it demands strategic focus, operational rigor, relentless financially controlled…

Taking care of your team’s health is not only a kind gesture; it’s also a wise business decision. The goal of preventive healthcare plans is to maintain workers’ well-being, engagement, and productivity. By identifying health…

Understanding the differences between buy-side and sell-side due diligence is a key component to navigating the M&A process with clarity and efficiency. Each side of the transaction has distinct objectives, approaches, and expectations, which shape…

For growing middle-market companies and their owners and investors, EBITDA remains a central metric of financial health. It provides a clear, normalized view of a company’s operating performance before the effects of financing decisions, income…

Operational due diligence (ODD) sometimes referred to as Quality of Operations (QofO) Diligence has become a valuable tool for discerning investors such as private equity, family offices, and other sophisticated investors in complex M&A transactions.…

A Look at High-Performance Consulting Models In the world of management consulting, traits like agility, specialization, and precision often define success. Interestingly, these same qualities are the cornerstone of elite military units—like special forces. While their…

In a competitive transaction environment, sell-side due diligence is more than a defensive tactic—it is a strategic enabler. Conducted ahead of the sale process, this discipline provides stakeholders with an objective assessment of financial and…

In periods of financial strain, companies must weigh decisions that can preserve enterprise value, stabilize operations, and avoid more disruptive alternatives such as bankruptcy. Corporate out-of-court debt restructuring serves as a pragmatic response to unsustainable…

In an increasingly competitive M&A environment, successful acquisitions require more than strategic intent. They demand disciplined execution, rigorous analysis, and informed decision-making. Buy-side due diligence enables acquirers to understand exactly what they are purchasing—and at…

When a business enters a period of distress, the decisions made in the early stages often determine whether value can be preserved—or may be permanently lost. A distressed company may face one or more combinations…

Thorough financial diligence is a foundational step in any merger, acquisition, investment, or strategic transaction. It ensures decision-makers have a clear, objective understanding of a target company’s financial health, performance, risks, and potential. While often…

Enterprise software implementations—especially ERP and large-scale digital transformation initiatives—are more than just IT upgrades. They are sweeping, high-stakes business transformations. When they go wrong, the fallout isn’t limited to blown budgets and missed deadlines. They…

Even profitable companies can run into cash flow issues. When cash outflows get ahead of cash receipts – even during periods of growth that demand even greater working capital – the pressure builds. A cash…

When it comes to buying or selling a business, surface-level financials rarely tell the full story. That’s when a quality of earnings analysis (QoE analysis) becomes critical. Whether you’re a buyer looking to validate a…

Even well-run companies can lose momentum when challenges mount—from shifting markets and rising costs to internal missteps. When performance begins to slip, a quick fix won’t cut it. What’s needed is a focused, well-executed turnaround…

In this RMA OC educational workshop, Jim Davidson President and Founder of Avant® Advisory Group, an operationally focused financial advisory and management consulting firm, provides an in-depth investigation into the warning signs for Middle Market lenders and investors to consider.…

Avant® Advisory Group has been engaged to serve as the exclusive financial advisor for Rolling Green, Inc. Rolling Green, Inc. is an expert provider of tree care services, including trimming, removal, land clearing, wildfire restoration, utility…

Key Differences between a CPA Audit & Quality of Earnings Analysis In this educational video, James F. Davidson, president and founder of Avant® Advisory Group, explores the main differences between a CPA audit and a…

EBITDA Adjustments & Their Importance In this insightful video, James F. Davidson, Managing Director and Founder of Avant® Advisory Group, examines the importance of EBITDA adjustments. He explains how these modifications create a more transparent…

Identifying Legitimate Add-Backs In this video, James F. Davidson, President of Avant® Advisory Group, outlines the standards for recognizing valid EBITDA add-backs in M&A deals. He emphasizes the significance of supporting documentation and making sure…

Recognizing Red Flags When Evaluating Add-Backs Listen to James F. Davidson, founder & President of Avant® Advisory Group, as he highlights crucial warning signs to consider when assessing add-backs to EBITDA in M&A deals. Jim…

Impact of Excessive & Unjustified Add-Backs on the Deal In this compelling video, James F. Davidson, CPA, CFF, CPA, CFE, CM&AA, CM&AP, Founder & President of Avant® Advisory Group, explores the risks of unwarranted and…

Gain free access to educational material from the FEA Webinar: Pitfalls, Risks, and Deal Breakers Surfaced (or Should Have Been) by a Quality of Earnings Analysis Key Takeaways: Critical differences between Quality of Earnings (“Q…

The attention-getting article is titled: “17-Year Sentence for West Palm Beach Eye Doctor in $73 million Medicare Fraud Case.” Dr. Salomon Melgen was convicted of 67 crimes involving healthcare fraud for persuading elderly patients to…

Newly formed Securities and Exchange Commission task forces will explore the use of the SEC’s increased data-mining capability as a way to detect financial-reporting fraud at corporations, the two leaders of one of the units…

Although there were immense opportunities for distressed investors in the immediate aftermath of the financial crisis, the environment has become challenging to predict. With cheap money, questionable recovery, and few bankruptcies, the number of distressed…

As a convicted felon, Sam E. Antar, the former CFO for the now-defunct consumer-electronics chain Crazy Eddie, no doubt has regrets. Among them: he is no longer in the game at a time when corporate…