Case Study: Maximizing Business Valuation for CBC, a Healthcare Provider in California
Client Overview
CBC is a healthcare business based in California, preparing for a potential sale. The owner and Executive Director, Deborah Cutter,, needed assistance in cleaning and reconciling financial records, preparing for due diligence, and maximizing the business’s valuation.
Challenges
- Disorganized Financial Records – Inconsistent bookkeeping made it difficult to present accurate financials.
- Unreconciled Bank & Credit Card Statements – Led to inaccurate bookkeeping, duplicate expenses, and misreported cash flow.
- Due Diligence Readiness – The business lacked a structured approach to seller-side due diligence.
- Unidentified Add-Backs – Certain discretionary expenses and one-time costs were not properly adjusted, leading to an understated adjusted EBITDA and business valuation.
- Inaccurate Categorization of Expenses & Income – Misclassified transactions distorted the true financial position and profitability of the business.
Actions Taken
Cleaned & Reconciled Financial Records
- Reviewed and corrected financial inconsistencies.
- Reconciled bank and credit card statements to eliminate duplicate expenses.
- Ensured compliance with accounting standards for accuracy and transparency.
Prepared for Seller-Side Due Diligence
- Compiled financial data into a well-structured Quality of Earnings (QoE) report.
- Created a comprehensive data room with essential documentation for potential buyers.
Optimized Business Valuation
- Identified and properly categorized add-backs to reflect true adjusted EBITDA.
- Reclassified expenses and income to present an accurate financial picture.
- Provided financial insights and strategies to enhance EBITDA and valuation.
Results
💰 $300K Increase in Business Valuation – Optimized financials and improved EBITDA.
📊 Fully Reconciled & Transparent Financials – Ensured a smooth due diligence process.
📂 Seamless Seller-Side Due Diligence – A well-prepared data room reduced buyer hesitation.
🚀 Successful & Confident Business Sale – Dr. Deb was well-positioned to negotiate better terms.
Client Feedback
"The team at Allied Consultants was instrumental in preparing my business for sale. They cleaned up our books, reconciled our financials, and provided an in-depth QoE report. Their expertise helped increase our valuation by $300K, making the entire process seamless!" – Dr. Deb, Owner, CBC
Deborah Cutter, Psy.D.Executive Director
https://www.cbc-autism.com/
