Understand Your True Cash Position and Financial Flexibility
Cash flow is the lifeblood of any business. Our Cash Flow & Liquidity Analysis provides a clear, data-driven assessment of your company’s ability to generate, manage, and sustain cash over time. This service helps business owners, investors, and lenders understand financial stability beyond reported earnings.
We go beyond EBITDA to evaluate how effectively your business converts earnings into real, usable cash flow.
Why Cash Flow Analysis Matters
Strong earnings do not always translate into strong liquidity. Businesses often face hidden cash constraints due to:
- Working capital inefficiencies
- Seasonal fluctuations
- Debt service obligations
- Growth-driven cash consumption
- Timing differences in receivables and payables
Our analysis identifies these dynamics to provide a true picture of financial health and liquidity risk.
Free Cash Flow Analysis
- Assessment of cash generated after operating and capital expenditures
- Evaluation of sustainable cash generation capacity
- Identification of one-time or non-recurring cash impacts
Operating Cash Flow Review
- Analysis of cash conversion from EBITDA
- Examination of revenue-to-cash timing differences
- Identification of cash leakage points
Working Capital Analysis
- Review of accounts receivable, inventory, and accounts payable trends
- Identification of working capital inefficiencies
- Normalization of seasonal or growth-related fluctuations
Liquidity & Short-Term Solvency
- Assessment of available cash and credit facilities
- Evaluation of debt service coverage
- Stress testing under downside scenarios
Cash Conversion Cycle Optimization
- Days sales outstanding (DSO) analysis
- Inventory turnover evaluation
- Days payables outstanding (DPO) benchmarking
Key Outputs & Deliverables
- Cash flow bridge (EBITDA to Free Cash Flow)
- Working capital analysis and normalization
- Liquidity risk assessment
- Cash conversion cycle metrics
- Actionable recommendations to improve liquidity
Who This Is For
Our cash flow and liquidity advisory services are ideal for:
- Business owners preparing for a sale or recapitalization
- Private equity firms evaluating investment targets
- Companies experiencing rapid growth or cash constraints
- Lenders assessing credit risk and debt capacity
- Management teams focused on operational efficiency
Value We Deliver
Our analysis helps you:
- Improve Financial Visibility – Understand where cash is generated and consumed
- Reduce Liquidity Risk – Identify potential cash shortfalls before they occur
- Enhance Valuation – Strengthen cash flow quality in M&A transactions
- Optimize Working Capital – Unlock trapped cash in operations
- Support Financing Decisions – Improve lender and investor confidence
Cash Flow in M&A and Valuation
In transactions, cash flow is just as important as EBITDA. Buyers and lenders closely evaluate:
- Cash conversion efficiency
- Working capital requirements
- Sustainability of cash generation
Our analysis ensures your business is positioned with a credible and defensible cash flow profile.
Strengthen Your Cash Position
Looking to improve liquidity, enhance cash flow visibility, or prepare for a transaction? Contact Sullivan Consulting to schedule a Cash Flow & Liquidity Assessment and gain clarity on your true financial position.
Contact us for a free consultation.
