From Deal Pressure to Deal Confidence: How an Engineering Firm Cleared a Critical QoE Hurdle
Business Challenges
- Needed to identify cost savings tied to transitioning from a public to a private company structure.
- Faced limited internal bandwidth within the private equity team during active deal negotiations.
- Required a credible, timely buy-side Quality of Earnings (QoE) to support transaction execution.
Key Outcomes
- Delivered a validated cost savings analysis by quarter to clarify EBITDA impact of going private.
- Completed a buy-side limited QoE to address diligence requirements and stakeholder scrutiny.
- Enabled successful insurance underwriting by satisfying Reps & Warranties diligence inquiries.
Project Overview
A private equity firm was in the process of acquiring an international engineering services and software company specializing in training, consulting, and simulation solutions for the power and process industries. As part of the transaction, the firm needed clarity on the financial impact of transitioning the business from public to private ownership, as well as support in completing a buy-side Quality of Earnings (QoE) analysis.
Our team was engaged initially to evaluate potential cost savings tied to the transition. As the deal progressed, the scope expanded to include a buy-side limited QoE to support transaction diligence and insurance requirements. We worked closely with the private equity team throughout a compressed timeline to deliver both analyses.
Business Challenge
The private equity firm faced multiple pressures common in active deal environments. Initially, they needed to assess which costs associated with being a public company would be eliminated post-transaction and how those changes would impact EBITDA. While preliminary analysis had begun internally, limited bandwidth and competing priorities during deal negotiations made it difficult to complete the work at the required level of rigor.
As the transaction advanced, it became clear that a formal buy-side QoE was necessary. This introduced an additional layer of urgency, as the analysis needed to meet the expectations of external stakeholders, including the Reps and Warranties insurance provider. The team required a partner who could step in quickly, validate assumptions, and deliver credible outputs under tight deadlines.
The Approach
We began with a focused analysis of the company’s identified public company expenses. Using a schedule provided by the client, our team evaluated each cost category, asked targeted questions, and verified the completeness and accuracy of the data. We then developed a structured view of anticipated cost savings, presenting the impact on a quarterly basis to provide clear visibility into EBITDA implications.
Shortly after, we were engaged to perform a buy-side limited QoE. Working in close coordination with the private equity team, we executed the analysis within an accelerated timeline. The work was completed in phases, beginning with the initial cost savings assessment in early June, followed by the QoE engagement later that month, and concluding with final deliverables by mid-July.
Throughout the engagement, our team maintained a hands-on, collaborative approach —ensuring alignment, addressing questions in real time, and keeping the process moving efficiently despite the compressed schedule.
The Results
- Provided a clear, validated view of cost savings associated with transitioning to private ownership, improving visibility into EBITDA impact.
- Delivered a buy-side limited QoE within a tight timeframe to support transaction diligence.
- Addressed all inquiries from the Reps and Warranties insurance provider, enabling them to proceed with policy binding.
- Supported the private equity team during a critical transaction phase by supplementing internal bandwidth with specialized expertise.