Deal diligence for private equity
Verify the seller's numbers from the documents in the data room, not from the summary that came with them.
SpreadSpaceâ„¢ reads the financial statements, tax returns, bank statements and supporting schedules a seller places in the data room and spreads them for the deal team. Every extracted figure keeps a link to the page it came from, so an associate, a vice president or the investment committee can open the source behind any number.
Build adjusted EBITDA with the add-backs shown, line public comparables up from their 10-Ks and carry the exhibits into the memo in your firm's template. Work in SpreadSpace or embed the workspace in the deal platform your team already uses.
Start from the data room, not the summary
Upload private-company audits, reviewed financial statements, business tax returns, bank statements and debt schedules from the seller. SpreadSpace reads the supported statements and schedules and keeps each company, reporting period and stated unit identifiable.
Internal statements and exports from the company's accounting system enter the same review. Supported consolidating statements keep each entity's column and the reported eliminations beside the consolidated total, so the team sets the scope of the deal before a figure is counted twice.
As diligence progresses, add current earnings reports, quarterly earnings updates and bespoke financial updates, including 10-Q filings, 8-K earnings releases and 10-K/A amendments where relevant. Review the supported financial statements and schedules with their own reporting periods and source pages before carrying the updated figures into the analysis.
Open the page behind any figure
A source-linked figure opens the uploaded document at the highlighted line. When the investment committee asks where a number came from, the answer is the page, not a recollection.
For derived figures, the contributing rows and their own sources stay available. The reviewer sees what a total includes before relying on it.
Build adjusted EBITDA with the add-backs shown
The reported figure and the deal team's view of it stay separate. Analysts choose the add-backs, and the spread shows each one beside the reported line it adjusts, with the period and the supporting document attached.
Lay out management's proposed adjustments and the team's own in the spreadsheet, so the committee can see which earnings number is the seller's and which is yours.
Line up the comparables from their 10-Ks
Upload the 10-K filings of public peers and the extracted statements take the same presentation as the target's under your firm's chart of accounts. Compare margins, growth and leverage across the set with the reported lines kept behind the mapped figures.
Supported tables from the notes to the financial statements sit beside the primary statements, so the detail behind a reported balance is available where the comparison needs it.
Write the investment committee memo in your template
Upload the memo your committee already reads, as a PDF or Word document, and SpreadSpace reproduces its structure as a reusable template. Bring the spread, the adjusted EBITDA schedule and the comparables into it as exhibits and write the recommendation around them.
Reviewers open a figure in the exhibit and land on its source. Finalizing records the version the committee saw, and reopening it is an explicit, recorded step.
Bring the review into your deal platform
Use the native workspace or embed the review in the deal management system your team already runs. Documents, spreads, source review and the memo appear inside your application, and an integration can retrieve finalized spreads and memo renders through the API.
Run the workflow on a representative data room
Bring the documents from a recent deal and the memo your committee reads. Follow one figure from the data room into the adjusted EBITDA schedule, the comparables and the exhibit, and see whether a second reviewer can do the same.
Keep exploring
Public market research
- 10-K, 10-K/A, 10-Q and 8-K extractionFinancial statements, as filed
- Earnings releasesResults as announced, ahead of the filing
- REITs and real estateSegment NOI and FFO from the filings
- Financial statement spreadingStandardized line items across periods
- Portfolio monitoringEach company's statements and filings, every period
- Business valuation memosFirst drafts from the extracted financials
M&A advisory
- M&A advisoryWork the sell side and the buy side from the same spread.
- Sell-side advisory and the CIMNormalized earnings with every adjustment shown
- Buy-side advisoryThe seller's numbers verified from the data room
- Business valuation memosFirst drafts from the extracted financials
- Public comparablesPeers from their filings under one chart of accounts
Due diligence
- Financial due diligenceRun quality of earnings and diligence work on traced documents.
- Quality of earnings reportAdjusted EBITDA, every adjustment sourced
- Net working capital and the pegAR and AP aging, net debt and the bridge
- Proof of cashBank activity tied to the books
- Tax-to-book reconciliationThe filed return beside the statements
- Leveraged buyoutsLeverage the target can carry, from its own cash flow
SMB
- SMBTax returns, bank statements, financial statement analysis and global cash flow for small-business lending.
- Tax return underwritingBusiness and personal returns, connected to cash flow
- Bank statement underwritingDeposits, balances and financing activity in context
- Global cash flow and debt serviceBusiness, guarantor and proposed debt in one review
- Financial statement analysisMessy, unstructured borrower data is normalized and spreadable within seconds
Middle Market
- Middle MarketFinancial statements, interim performance, complex borrower groups and debt service in one commercial credit review.
- Financial statement analysisAnnual statements, interim performance and lender adjustments
- Global cash flow and debt serviceRelated businesses, guarantors and proposed debt
- Debt schedules and financingNotes, maturities and payments beside the financials
- Credit memosReviewed spreads and repayment analysis, together
Real Estate
- Real EstateProperty financial statements, adjusted NOI, sponsor support and debt service coverage for commercial real estate lending.
- Property financial statementsOperating statements and rent rolls in one review
- Adjusted NOIProperty income, expenses and lender adjustments
- Sponsor and guarantor cash flowConnect property repayment to sponsor support
- Debt service coverageProperty DSCR with proposed financing
Mortgage
- MortgageBorrower income, self-employment, rental properties and debt-to-income with the original evidence in view.
- Income verificationBorrower income connected to the supplied documents
- Self-employed borrower incomePersonal returns and the business behind the income
- Rental income analysisProperty income and expenses, traced to the source
- Debt-to-income analysisVerified income and monthly obligations together