Module 8, Private Equity
Deal-sourcing pipeline, CPA-prepared quality-of-earnings documentation, financial diligence workbench, and portfolio monitoring, for PE fund managers and the Canadian mid-market companies they target. Built on the same financial data the rest of the platform uses.
A PE buyer receives a CIM, signs an NDA, and begins diligence. The first thing they do is reconstruct the normalized EBITDA. They find three years of one-time items the seller called one-time, owner compensation that wasn't disclosed, and a revenue recognition policy that doesn't match what the management presentation said.
The buyer's QofE team takes eight weeks instead of four. The seller gets a retraded offer. Or no offer at all.
On the fund side, portfolio companies report in twelve different Excel formats. The GP spends a week each quarter reconciling them into something an LP can read. Every portfolio company has a different fiscal year, a different chart of accounts, and a different definition of EBITDA.
Capital Toolkit brings PE deal preparation and portfolio monitoring onto one platform, so the QofE documentation is done before the buyer asks for it, and the portfolio reporting is consistent because all twelve companies run on the same Books and FP&A infrastructure.
Three phases
Private equity has three distinct information needs. The platform is structured to serve all three, from the first look at a target through close through portfolio monitoring.
Phase 1 · Sourcing
Track deals from initial contact through CIM receipt to LOI. Standardized deal scoring. CPA preliminary financial review before committing to full diligence. Rejected deals preserved with the rationale for future fund cycles.
Phase 2 · Diligence
CPA-prepared quality-of-earnings bridge, normalized EBITDA reconstruction, working capital analysis, and the full financial diligence workbench. Built on the target's actual Books data where available, validated independently where not.
Phase 3 · Portfolio
Monthly management accounts, KPI dashboards, budget-vs-actual variance, and covenant compliance certificates, consistent across every portfolio company because all of them run on the same Books infrastructure. GP-level consolidation for LP reporting.
Deal types
Founder exit, full control transfer. QofE documentation, management presentation prep, data room, and post-close Books transition, platform handles the full deal cycle.
Partial liquidity event, founder retains a meaningful rollover. Valuation determines the equity split; the CPA models the leverage and the preferred return on the PE stake.
PE invests for growth with no immediate founder liquidity. Business plan, projection model, and KPI framework are the deliverables, the PE partner needs to understand the unit economics before committing.
The management team buys out the founder with PE backing the leverage stack. Two-sided financial analysis: management team's equity model and the PE sponsor's return analysis.
A division or subsidiary separating from a larger group. Carve-out financials (allocating shared costs, eliminating intercompany transactions) require the same QofE rigor as a standalone deal, with additional complexity.
A PE-backed platform company buying a tuck-in. Pro forma combined financials, synergy analysis, and the combined entity's leverage and coverage analysis, built on the Books data from both companies.
How it works
CPA does a preliminary financial review of the CIM or management presentation: normalized EBITDA, working capital, capex intensity, leverage capacity. Deal-quality score before committing to full diligence.
Full QofE workbook: three- to five-year EBITDA bridge, one-time item analysis, working capital peg, and revenue quality assessment. Built from the target's Books data or reconstructed from the financial statements.
Leverage model for the capital structure: senior, subordinated, preferred. Management equity model with vesting and anti-dilution. Return analysis at the PE sponsor level under multiple exit scenarios.
Post-close, the portfolio company is on Books. Monthly management accounts, KPI tracking, budget-vs-actual variance, and covenant compliance certificates flow automatically. GP consolidation on demand.
What's inside
Normalized EBITDA bridge with every adjustment sourced and classified: recurring vs one-time, owner-specific vs business, accounting vs cash. The document that survives a buyer's QofE challenge.
Three to five years of CPA-normalized historical financials. One-time items, owner compensation, related-party transactions, all adjusted, all documented with rationale.
Driver-based three-year projection. Revenue build, margin bridge, working capital, capex. The same FP&A engine the fund's deal team will stress-test, built on real data, not top-down assumptions.
Capital structure model at the deal level: senior, subordinated, preferred equity. IRR and MOIC analysis at the GP level under bear/base/bull exit assumptions.
CPA-curated document repository for diligence. Identity-verified participant access, per-document audit log, sealed at close. Same infrastructure as the M&A module.
Two-sided checklist: target provides documents, fund team marks items reviewed. Open items visible to both sides at all times. Progress tracked against deal timeline.
Post-close, configurable KPI dashboard per portfolio company. Revenue, EBITDA, working capital, headcount, key operating metrics, visible to the GP across the portfolio.
For portfolio companies with debt, the platform tracks the financial covenant schedule (leverage ratio, coverage, minimum liquidity) against the actual Books data each period.
GP-level consolidated view across all portfolio companies. Fund performance, portfolio summaries, distribution waterfall. Export to the format LPs expect.
Who it's for
Run your deal pipeline, financial diligence, and portfolio monitoring on one platform. Your deal team and the target's CPA work from the same Books data, which means QofE is faster, more defensible, and less subject to the last-minute retrading that comes from financial surprises.
Preparing for a PE sale or recap. The QofE documentation, normalized financials, and data room a PE buyer will require, built in advance, not under the pressure of a ninety-day diligence clock.
Run your PE transaction advisory practice on the same platform as the client's books. QofE preparation, deal structuring, and portfolio-company onboarding, all on one platform. Sell-side and buy-side mandates both work.
Honest status
Private Equity today is delivered through the platform's existing Books, FP&A, Valuation, and M&A modules: the QofE workbook, data room, and post-close monitoring infrastructure are all built. PE-specific features (deal pipeline management, multi-company GP consolidation, and LP reporting packages) are the next layer.
What feeds a PE-grade file
A PE deal — full sale, recapitalization, or growth equity — opens with the buyer's CFO pulling three years of audited financials, a normalized EBITDA bridge, the FP&A driver model, and a defensible enterprise value. The modules below produce those inputs; running them ahead of the LOI is what turns a multi-week diligence into a multi-day one.
Reconciled, period-locked, audit-trail-complete ledger. PE diligence dives into transaction-level detail; clean books are the difference between a one-week QofE and a one-month forensic reconstruction.
See module →Review-level or audit-grade financials prepared from the live ledger. The baseline package every PE buyer's accounting advisor opens first, with the working paper trail that backs it.
See module →Driver-based three-year projection. PE buyers underwrite on the forward case; the variance history demonstrates the projection is meeting itself before the negotiation starts.
See module →Defensible enterprise value across five methods with qualitative risk on top. Anchors the negotiation on a number the seller can stand behind and the buyer's CBV can rebuild.
See module →Data room, sale-close lock, transfer-of-account workflow. Same engagement surface whether the buyer is a strategic, a PE fund, or a family office.
See module →Acquisition leverage stacks — senior + ABL + mezzanine — typically sit underneath the PE equity check. Models the full stack before the term sheet is negotiated.
See module →Twenty-minute conversation. Bring the deal you're working on (buy-side, sell-side, or portfolio monitoring) and we'll walk through the QofE workflow, the data room, and the post-close monitoring setup.