Delivering a Comprehensive QoE Assessment Under Extreme Time Pressure
The CFO's call came in on a Monday afternoon. The acquisition was moving fast—faster than anyone anticipated. Financial data was incomplete, the target's books were messy, and the board needed answers before the end of next week.
2 Weeks
Timeline
Buy-Side QoE
Project Type
Deal Closed
Outcome
Behavioral Healthcare CFO
Client
Executive Summary
A mid-sized behavioral healthcare provider engaged Harbor View Consulting to perform a Buy-Side Quality of Earnings assessment for an acquisition target.
With an extremely compressed two-week timeline, incomplete financial data, and undisclosed accounting complexities, the engagement demanded rapid mobilization and deep technical expertise.
The team delivered a comprehensive QoE report upon initial delivery that required only minor adjustments to finalize.
Engagement Profile
- Mid-sized behavioral healthcare provider
- Buy-Side Quality of Earnings assessment
- Acquisition target
- Compressed two-week delivery timeline
The Challenge
The client required a Buy-Side Quality of Earnings assessment for an acquisition target with an extremely condensed timeline and significant data challenges.
Compressed Timeline
The team had approximately two weeks to complete a comprehensive Quality of Earnings assessment—a process that typically takes at least a month.
Poor Data Quality
Seller-provided materials were delivered late and initial financial data did not tie out, requiring multiple rounds of requests and reconciliation.
Hidden Complexity
The target company had messy accounting that the client had not fully disclosed upfront, including undefined 1099 contractor relationships and related party complexities.
The Solution
Harbor View Consulting deployed a specialized team to tackle the engagement with agility, precision, and proactive consulting.
Agile Execution
Parallel Workstreams
The team adapted to the condensed timeline by working in parallel workstreams—Technical Accounting, Data Analysis, and Reporting—to maximize efficiency without sacrificing quality.
Rapid Mobilization
Within hours of the initial call, Harbor View assembled a specialized team with deep experience in healthcare transactions and revenue cycle management.
Tailored Deliverables
Client-Focused Reporting
Instead of a generic report, the team customized the deliverable to focus specifically on the client's key concerns and the unique risks of the acquired company's business model.
Actionable Insights
Every finding was presented with clear context and practical recommendations, enabling the client's board to make informed decisions quickly.
Proactive Consulting
Beyond the Standard Scope
The team went beyond the standard QoE scope to identify potential system implementation needs and post-acquisition integration strategies.
Strategic Partnership
By anticipating downstream challenges, Harbor View positioned itself as a long-term partner rather than a one-time transaction vendor.
Key Findings & Value Add
The team uncovered several critical issues that the client was previously unaware of, providing significant value beyond the initial scope.
Financial & Liability Risks
- Potential Unrecorded Liabilities
Determined that commissions did not need to be accrued as a liability. Identified the more meaningful exposure involving possible unrecorded liabilities related to worker classification and sales tax nexus issues.
- Revenue Recognition
Clarified a revenue stream recognized 50% upfront/50% at completion, ensuring transparency in earnings quality.
- Related Party Issues
Uncovered undisclosed related party issues with leases, including under-recognized rent expense resulting in an EBITDA adjustment in favor of the Buyer, and provided clarity on equity distributions.
Operational & Compliance Risks
- 1099 / Employee Classification
Identified possible worker classification issues that could expose the buyer to future claims and other liabilities.
- Indemnification Protections
The buyer was able to add indemnification language to the APA to protect against future claims related to these issues—a direct result of the team's findings.
Client Feedback
Client CFO
Mid-Sized Behavioral Healthcare Provider
"The first draft they delivered was essentially ready to go, 98 percent complete right out of the gate. We only needed a couple of minor adjustments to finalize it. The level of skill and expertise their team brought to this engagement was truly exceptional."
Key Takeaways
Rapid Response Capability
Demonstrated the ability to deliver high-quality, tailored insights under extreme time pressure—mobilizing a specialized team within hours.
Risk-First Approach
The ability to look beyond the numbers to find operational and legal risks, like contractor classification, creates immense value for buy-side clients.
Proactive Partnership
Identifying future needs around systems and integration positions Harbor View as a long-term partner, not just a transaction vendor.
Need a Quality of Earnings Assessment?
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