Assess whether related-party sales should be backed out of valuation (5658ac)

SITUATION The working file is revenue-quality bridge from bookings to cash after IT diligence showing two ERPs and no chart of accounts map. Working-capital true-up analyst in a family-office reviewing a manufacturing target has to name Proceed or Reprice for this M&A Due Diligence People and Contracts file.

DECISION Working-capital true-up analyst in a family-office reviewing a manufacturing target must choose Proceed / Reprice / Walk / Hold using revenue-quality bridge from bookings to cash after IT diligence showing two ERPs and no chart of accounts map.

HYPOTHESES TO TEST 1. Working-capital true-up analyst can defend Proceed from revenue-quality bridge from bookings to cash after IT diligence showing two ERPs and no chart of accounts map in a M&A Due Diligence challenge. 2. Working-capital true-up analyst cannot defend Proceed from revenue-quality bridge from bookings to cash; Reprice is what the extract actually supports after IT diligence showing two ERPs and no chart of accounts map. 3. IT diligence showing two ERPs and no chart of accounts map never reached the population in revenue-quality bridge from bookings to cash — reopen intake, do not close related-party sales should be. 4. Two facts in revenue-quality bridge from bookings to cash after IT diligence showing two ERPs and no chart of accounts map conflict for working-capital true-up analyst; hold this People and Contracts file.

ANALYSIS REQUIRED 1. Separate a one-off add-back from a recurring earnings issue in revenue-quality bridge from bookings to cash. 2. Map reps, earnout mechanics, and integration risk a family-office reviewing a manufacturing target would inherit. 3. Tie quality-of-earnings, working-capital, and contingent items in revenue-quality bridge from bookings to cash to related-party sales should be. 4. For this M&A Due Diligence People and Contracts file, read revenue-quality bridge from bookings to cash against IT diligence showing two ERPs and no chart of accounts map and write the one fact that would move related-party sales should be for working-capital true-up analyst.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / People and Contracts packet (revenue-quality bridge from bookings to cash after IT diligence showing two ERPs and no chart of accounts map). The follow-on People and Contracts action is what working-capital true-up analyst does next: implement the option, assign an owner, and log the missing fact.

COMMAND RETURNS - Bottom-line M&A Due Diligence option on related-party sales should be, then the evidence in revenue-quality bridge from bookings to cash, then the action for working-capital true-up analyst - Hypothesis scorecard against revenue-quality bridge from bookings to cash: supported / rejected / untestable - What changes related-party sales should be if IT diligence showing two ERPs and no chart of accounts map is later withdrawn - Named option among Proceed, Reprice, Walk and the fact that kills the others