M&A Diligence Outsourcing for US Advisory Firms

Overview

US-based M&A advisory firms, lean, growing and hitting the capacity ceiling, engaged Velonix as their extended team for Financial Due Diligence and Quality of Earnings. Velonix owned the full analytical workflow across multiple live transactions: cleaning of accounting data, GL mapping, preparation of financial statements, Adjusted EBITDA normalization, working capital, proof of cash, red-flag analysising and formal quality control. For one of the firms, Velonix also attended management calls, managed the Document Request List and prepared diligence questions. Velonix also rebuilt and automated the firms' QoE models. The result was rapid, sustainable expansion of their transaction advisory practice.

The challenge

Both firms faced a problem common to boutique M&A practices: senior advisors were spending too many hours on data-heavy analytical work that should sit with a dedicated team. That created a hard ceiling on how many deals they could run at once without slowing down or compromising quality.

The Velonix engagement model

Velonix embedded as a dedicated extended team, the analytical engine behind each firm's branded FDD practice. The workflow was built around US deal timelines:

Scope of work

Quality of Earnings: core analysis

Velonix owned the complete QoE workbook on every engagement, including these schedules:

• GL mapping and trial balance reconciliation
• P&L and balance sheet population
• Adjusted EBITDA bridge and normalization
• Net working capital analysis and NWC peg
• Net debt and debt-like items schedule
• Proof of cash
• Revenue and customer concentration analysis
• Vendor and supplier concentration analysis
• AR and AP aging analysis
• Reconciliation to tax filings
• Payroll reconciliation

Red-flag analysis

Ahead of each model delivery, Velonix provided a preliminary red-flag analysis: a summary of the most significant financial observations, data inconsistencies and transaction risks. The senior team opened each morning with an analytically grounded read of the data, ready for investor conversations and management follow-up.

Quality control

No model, report or deck left Velonix without a formal QC review by a senior team member, covering analytical accuracy, formula integrity, template adherence and completeness of red-flag observations. QC was a built-in process gate, not a final-stage check.

PowerPoint QoE deck

For selected transactions, Velonix translated the Excel analysis into an investor-ready QoE presentation, branded to the firm's template and covering Adjusted EBITDA, NWC, net debt, concentration and red flags.

Extended deal-process support

For one firm, the engagement extended beyond the model into the deal process itself:

• Management calls: Attended diligence calls with target management alongside the US team, incorporating clarifications into the model in real time.
• Document request list: Prepared and maintained the DRL, tracking outstanding requests and following up as scope evolved.
• Question preparation: Developed targeted diligence questions from the QoE findings and red-flag analysis.

This let the firm's senior advisors show up to management calls as pure strategic principals, with Velonix handling the process mechanics behind the scenes.

QoE model automation

Both firms ran manually built QoE models: functional but slow, inconsistent across deals and prone to formula errors that surfaced at review. Velonix rebuilt both from the ground up:

• Automated data population: Structured import and mapping logic replaced manual entry at the GL and trial balance stages.
• Built-in consistency checks: Cross-tab reconciliation and tie-out logic surfaced discrepancies before QC.
• Standardized architecture: A consistent template across QoE, NWC, net debt and proof of cash cut setup time on new deals.
• Version control: A structured versioning approach kept every update traceable.

The outcome

Why US firms choose Velonix

Velonix is not a staffing agency or a generic offshore vendor. We specialize in this niche: the M&A diligence extended team for US M&A firms, PE groups and independent sponsors.

• M&A specialists, not generalists: FDD and QoE are our core specialization, with no learning curve on your deals.
• Licensed US CPA in-house: US-GAAP fluency and institutional-quality judgment built into the analysis, not bolted on.
• US client base: Every client we serve is US-based, so US-GAAP, deal conventions and PE expectations are our day-to-day working context.
• Dual-credential team: US CPA expertise combined with Indian CA rigor, at outsourcing economics.
• Same-day delivery: A structural promise, not a premium feature.
• Model automation: We improve the tools, not just the outputs, with formal QC on every deliverable.
• Complete white-label delivery: Your brand, your format, your client relationship.