Case Study — Project CFO

Preparing a Healthcare Services Business for a Clean Exit

A founder-owned business wanted to go to market within six months — but its financials weren't ready for buyer scrutiny. A Traverse project CFO rebuilt the numbers and ran sale readiness end to end.

Industry
Healthcare Services
Revenue
~$45M
Engagement
Project CFO
Situation
Sale Readiness

Founders preparing for a sale or an M&A process often need sale readiness work done well before a banker is engaged. Traverse scopes this as a project CFO engagement — a defined deliverable, owned end to end, handed off complete.

The Challenge

Strong Business, Unready Financials

The founder had built a genuinely valuable business over fifteen years, but had never run a sale process. The financials reflected years of pragmatic, founder-led decision-making — not the standard a sophisticated buyer would expect.

01

Financials Wouldn't Survive Diligence

Two related entities shared a bank account and a bookkeeper, revenue recognition varied by service line, and there was no clean, standalone P&L a buyer's diligence team could underwrite without extensive rework.

02

No Quality-of-Earnings Story

The founder knew which expenses were personal or one-time, but none of it was documented. Without support for EBITDA addbacks, buyers would discount the earnings picture rather than take the founder's word for it.

03

No Data Room, No Management Presentation

This was the founder's first sale process. There was no data room structure, no management presentation, and no experience anticipating what buyers would ask for or when.

The Traverse Approach

Build a Data Room a Buyer Can Trust

Traverse scoped a project CFO engagement against a defined deliverable and a six-month timeline: a market-ready data room, a defensible quality-of-earnings position, and a founder who could walk into buyer meetings prepared rather than exposed.

  1. Normalize the financials. Separated the commingled entities into a clean standalone P&L and balance sheet, and standardized revenue recognition across every service line.
  2. Document the EBITDA story. Built a fully supported quality-of-earnings schedule identifying and substantiating every addback, so the earnings picture could withstand a buyer's own QoE review.
  3. Build the data room and management presentation. Assembled a structured data room and a management presentation from scratch, organized around how buyers actually run diligence.
  4. Own buyer diligence. Managed incoming diligence requests directly, turning around responses quickly and keeping the founder focused on running the business through the process.
What Is Quality of Earnings?

Quality of earnings (QoE) tests whether reported EBITDA reflects a company's true, sustainable earning power — adjusting for one-time items, personal expenses, and non-recurring revenue. Buyers run their own QoE review during diligence; a seller who arrives with a defensible QoE position and every addback documented tends to see fewer valuation surprises and a faster path to close.

Market-Ready in Eight Weeks, Signed LOI in Five Months

A business that wasn't ready for a single buyer conversation went to market with a credible earnings story and closed a signed letter of intent ahead of schedule.

Data Room
8 Weeks

From engagement start to a fully organized, market-ready data room.

Diligence Turnaround
48 Hrs

Average response time on buyer diligence requests during the process.

Time to LOI
5 Months

Signed letter of intent, ahead of the founder's original timeline.

Founder Focus
Protected

Buyer diligence calls handled by the project CFO, not the founder.

I'd never sold a company before. Our project CFO had done it a dozen times, and that experience showed up in every buyer conversation — from the first data room request to the final call before the LOI.

Founder Healthcare Services Company

About Quality of Earnings and M&A Data Rooms

What is quality of earnings (QoE)?

Quality of earnings (QoE) is an analysis that tests whether a company's reported EBITDA reflects its true, sustainable earning power — adjusting for one-time items, personal expenses run through the business, non-recurring revenue, and accounting policy choices. Buyers commission their own QoE review during diligence; sellers who prepare a defensible QoE position in advance, with every addback documented and supportable, tend to see fewer valuation surprises and a faster path to close.

What goes into an M&A data room?

An M&A data room organizes the financial, legal, operational, and commercial documents a buyer needs to complete diligence — historical financials, a quality-of-earnings schedule, contracts, cap table, org chart, customer concentration data, and a management presentation, among others. A well-structured data room, built before a process starts rather than assembled reactively, signals seller readiness and materially shortens the diligence timeline.

See How Traverse Handles Other Situations

This case study is an anonymized composite drawn from representative Traverse engagements. Client identity, exact figures, and identifying details have been adjusted to protect confidentiality.

Thinking About a Sale in the Next Year?

Traverse project CFOs prepare founders and owners for a cleaner, higher-value transaction — before an investment banker ever enters the picture.

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