Assess whether integration costs were sandbagged in the CIM (9eff62)

Situation

Integration-risk PMO in a PE platform evaluating a founder-led SaaS add-on has one working extract — environmental known-condition schedule — after add-backs that are just delayed opex. If environmental known-condition schedule cannot support integration costs were sandbagged, the honest M&A Due Diligence output is hold.

Decision

Integration-risk PMO in a PE platform evaluating a founder-led SaaS add-on must choose Proceed / Reprice / Walk / Hold using environmental known-condition schedule after add-backs that are just delayed opex.

Hypotheses to test

• The population in environmental known-condition schedule is the one add-backs that are just delayed opex named, so Proceed follows for this People and Contracts file.
• The population in environmental known-condition schedule is adjacent only to add-backs that are just delayed opex; Reprice is the honest M&A Due Diligence call.
• A PE platform evaluating a founder-led SaaS add-on already contained add-backs that are just delayed opex before environmental known-condition schedule arrived; no new People and Contracts path.
• Provenance on environmental known-condition schedule after add-backs that are just delayed opex is broken; do not pick Proceed or Reprice yet.

Analysis required

• Map reps, earnout mechanics, and integration risk a PE platform evaluating a founder-led SaaS add-on would inherit.
• Tie quality-of-earnings, working-capital, and contingent items in environmental known-condition schedule to integration costs were sandbagged.
• Name the document integration-risk PMO still needs before signing.
• For this M&A Due Diligence People and Contracts file, read environmental known-condition schedule against add-backs that are just delayed opex and write the one fact that would move integration costs were sandbagged for integration-risk PMO.

Recommendation

Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / People and Contracts packet (environmental known-condition schedule after add-backs that are just delayed opex). Lead with the M&A Due Diligence option environmental known-condition schedule can support after add-backs that are just delayed opex, then the two facts that force it, then the Monday action for integration-risk PMO in a PE platform evaluating a founder-led SaaS add-on.