Sell-Side Quality of Earnings for a US Based Government Technology Services Company

Industry

Government technology services (GovTech)

Challenge

The company needed to clearly define and support its sustainable EBITDA prior to entering a competitive sale process, ensuring the business was well-positioned for buyer diligence and valuation.

Results

The analysis identified $6.0M in reported EBITDA and $7.5M in adjusted EBITDA, uncovering $1.5M in adjustments. The final report provided a defensible view of normalized earnings, highlighted financial and contract risks, and strengthened the seller’s position for the sale process.

$6.0M+

EBITDA

40+

Contracts

$50.4M

Enterprise Value

$7.5 M

Adjusted EBITDA

The sell-side QoE process was clean and straightforward, the OAG team was great to work with, and we ultimately sold the business at a great multiple.

Tim Smith

CEO @ Gov Tech Solutions

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About your Customer

A diversified US-based government technology and mission-critical services company serving multiple government contracts and customers across various service lines, including technology integration, AV/VTC, unified communications, project management, network services, and facilities support.

The Challenge

A Lower Middle Market Investment Bank hired OAG to complete a Sell Side QOE for a sale in a competitive market, the US-based government technology services company faced the critical task of clearly articulating and supporting its sustainable EBITDA. With diverse revenue streams across government contracts, technology integration, AV/VTC, unified communications, and facilities support, the business needed a precise understanding of its financial health to withstand buyer scrutiny, support its valuation, and address potential contract or customer concentration risks.

The QOE Process

The company engaged O’Connell Advisory Group for a comprehensive sell-side Quality of Earnings (QoE) analysis. OAG’s transaction advisory team reviewed historical financials, analyzed revenue quality, customer and contract concentration, labor costs, subcontractor expenses, and identified all necessary EBITDA adjustments. This rigorous process ensured that all financial representations were accurate and defensible, equipping the seller with the detailed insights required to confidently enter the sale process and respond to buyer due diligence.

The Results