Answers to Common Transaction Questions

We generally work with businesses generating more than $7 million in annual revenue. Most engagements involve lower middle-market transactions ranging from approximately $3 million to $150 million in enterprise value.

Financial due diligence is the process of analyzing a company's historical financial performance, earnings quality, working capital, balance sheet accounts, and operational trends to identify risks and validate assumptions before a transaction closes.

Buy-side financial diligence typically begins after a Letter of Intent (LOI) has been signed and before the transaction closes.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is one of the most common measures used to evaluate operating performance and determine business value.

Business value is often estimated by applying an industry-specific valuation multiple to normalized EBITDA. The multiple varies by industry, growth prospects, customer concentration, management depth, and market conditions.

The NWC Peg represents the amount of working capital the seller agrees to deliver at closing. Differences between the peg and actual working capital can result in purchase price adjustments after closing.

No. 712 specializes in financial diligence and transaction consulting. When legal, tax, valuation, or investment banking expertise is needed, we help clients connect with trusted specialists.

Both. 712 provides buy-side and sell-side transaction support depending on the needs of the client and the transaction.

Timelines vary depending on transaction size, complexity, and responsiveness of the parties involved. Most engagements range from several weeks to several months.

The best place to start is a confidential conversation. We'll discuss your situation, goals, and timeline and determine whether our services are a good fit for your needs.