A leading private equity-backed technology and engineering solutions provider sought to expand its U.S. Gulf Coast footprint through the acquisition of a privately held industrial electrical contractor. The primary goal was to validate the stability of the target’s earnings and identify potential federal, state, and employee-related tax exposures.
The client faced significant technical accounting challenges due to the target’s complex percentage-of-completion accounting, which created volatility in reported revenue. They required a partner with deep senior-level expertise to normalize historical performance and structure the transaction to maximize the after-tax result. Opportune was uniquely qualified due to its team of seasoned former Big 4 auditors and tax experts, who provide an agile approach to quality-of-earnings analysis.
Opportune rapidly deployed a cross-functional team to perform comprehensive financial and tax due diligence. Our professionals modeled and optimized the target's reported EBITDA by identifying non-recurring transactions and non-cash adjustments. To address distorted historical performance, Opportune performed a hindsight analysis on fixed-price contracts, applying final project margins to historical periods to effectively normalize revenue and gross margin.
Simultaneously, our tax experts structured and implemented a three-fold approach that leveraged quality of earnings findings to identify uncertain tax positions. By collaborating with legal counsel, Opportune proposed a strategic acquisition pattern designed to achieve a complete tax basis step-up for the buyer. This client-centric approach focused on maximizing present value while highlighting customer concentration risks and identifying low-margin projects for future resource optimization.
When you choose Opportune, you gain access to seasoned professionals who not only listen to your needs, but who will work hand in hand with you to achieve established goals. With a sense of urgency and a can-do mindset, we focus on taking the steps necessary to create a higher impact and achieve maximum results for your organization.