Assess whether integration costs were sandbagged in the CIM (dca69b)

Situation

After a customer who just sent a non-renewal, QoE add-backs the seller marked 'normalized' is what buy-side QoE lead can touch in a sponsor doing confirmatory after a tight auction. M&A Due Diligence will live with Proceed versus Reprice on this Separation and Integration file.

Decision

Buy-side QoE lead in a sponsor doing confirmatory after a tight auction must choose Proceed / Reprice / Walk / Hold using QoE add-backs the seller marked 'normalized' after a customer who just sent a non-renewal.

Hypotheses to test

• QoE add-backs the seller marked 'normalized' reads as Proceed once a customer who just sent a non-renewal is lined up to the same M&A Due Diligence population.
• QoE add-backs the seller marked 'normalized' is closer to Reprice after a customer who just sent a non-renewal; Proceed would over-claim this Separation and Integration extract.
• Walk is still live in QoE add-backs the seller marked 'normalized' for buy-side QoE lead in a sponsor doing confirmatory after a tight auction.
• QoE add-backs the seller marked 'normalized' is missing the fact buy-side QoE lead needs after a customer who just sent a non-renewal; stop this M&A Due Diligence close.

Analysis required

• Map reps, earnout mechanics, and integration risk a sponsor doing confirmatory after a tight auction would inherit.
• Tie quality-of-earnings, working-capital, and contingent items in QoE add-backs the seller marked 'normalized' to integration costs were sandbagged.
• Name the document buy-side QoE lead still needs before signing.
• For this M&A Due Diligence Separation and Integration file, read QoE add-backs the seller marked 'normalized' against a customer who just sent a non-renewal and write the one fact that would move integration costs were sandbagged for buy-side QoE lead.

Recommendation

Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Separation and Integration packet (QoE add-backs the seller marked 'normalized' after a customer who just sent a non-renewal). The follow-on Separation and Integration action is what buy-side QoE lead does next: implement the option, assign an owner, and log the missing fact.