Success Story: Supporting Strategic Growth in Emergency Services

The Client

The client is a provider of medical transportation and 911 emergency services, serving communities with critical care and patient transport solutions. They were evaluating a potential add-on acquisition in the same sector and needed insight into the financial health of the target business, including a conversion of its financial statements from cash to accrual accounting to better understand its earnings and operational performance.

The Challenge

The client and seller had agreed on an EBITDA multiple to calculate the purchase price but did not have a clear sense of seller’s earnings under GAAP. The seller’s business included three separate operating companies that had not been combined for reporting purposes and involved multiple transactions with affiliated companies. Key issues included revenue recognition, proper allocation of shared expenses and a stand-alone cost analysis. Accurate financial insights were critical for the client to negotiate confidently and ensure the transaction reflected the true economic performance of the target business.

The Process

Weaver’s transaction advisory services team was engaged to provide a quality of earnings and net working capital analysis of the target business. We conducted a thorough review of historical financial information, converting the seller’s cash-based statements to an accrual basis to provide a GAAP-compliant view of earnings. As revenue recognition was a critical unknown, Weaver prepared a waterfall analysis to match cash collections to the date of service and evaluate revised performance metrics such as net revenue per transport and estimated future collections.

Our team also performed a stand-alone operating expense review, adjusting for shared personnel, allocated software and technology costs, and vehicle maintenance expenses. By reconciling intercompany transactions and ensuring consistent accounting treatment across the three operating entities, Weaver was able to provide a clear picture of the target’s financial performance, helping the client assess earnings and negotiate with greater certainty.

The Deliverables

Weaver provided a data-driven view of the target business through a robust Databook analysis. Our key deliverables included:

• Quality of earnings insights: Reconciled cash-to-accrual adjustments to present GAAP-compliant earnings
• Stand-alone expense analysis: Evaluated operating costs, including shared personnel, technology and vehicle maintenance
• Transaction support: Informed purchase price negotiation, validated integration assumptions and supported financing efforts

This work validated the target’s financial performance and provided actionable insights to guide post-transaction planning.

Learn more about our services

©2026