Mark Osborne explains how private equity firms buying lower-middle-market companies are demanding far more than audited financials. They now scrutinize earnings quality, internal controls, and cash flow sustainability. Sellers must prove their operations are robust and scalable to compete.
Yeah, and we're seeing, you know, as private equity gets more involved in the lower middle market, that they're really bringing a lot more rigor to the process, which is sort of raising the standard for a lot of transactions so that, you know, transactions that, you know, maybe a few years ago, they would have just sort of taken well-audited books as the, you know, sort of source of truth, Today, they're digging a little deeper, and we even see that there's even more pressure, not just on sort of the earnings themselves, but also on the underlying systems.
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