Quality of Earnings Reports
Institutional-quality financial due diligence for M&A transactions, prepared by experienced M&A professionals.
Make Confident Transaction Decisions
A Quality of Earnings report is the gold standard of financial due diligence. Whether you're buying or selling a business, our QoE analysis provides the clarity and confidence needed to negotiate from a position of strength and close with certainty.
Buy-Side vs. Sell-Side Analysis
Different goals require different approaches. We tailor our analysis to your side of the transaction.
Buy-Side Due Diligence
Protect your investment with thorough validation
What Our QoE Report Covers
EBITDA Adjustments
Thorough analysis of add-backs, normalizations, and adjustments to arrive at true economic earnings.
Working Capital Analysis
Calculation of normalized working capital targets and identification of seasonal or cyclical patterns.
Revenue Quality Assessment
Analysis of revenue recognition, customer concentration, contract terms, and recurring vs. non-recurring revenue.
Expense Normalization
Identification of owner-related, one-time, and non-recurring expenses for accurate earnings representation.
Pro Forma Analysis
Forward-looking financial projections incorporating identified adjustments and run-rate assumptions.
Prepared by Professionals Who Understand Transactions
Our QoE team combines public accounting expertise with real-world M&A experience. With over 200 QoE reports completed, we understand what buyers, sellers, and their advisors need to move transactions forward with confidence.
Who We Serve
Business Buyers
Validate the target's financial performance before committing capital.
Business Sellers
Present your earnings professionally to maximize valuation and deal certainty.
Private Equity Firms
Institutional-quality diligence for platform and add-on acquisitions.
Investment Banks
Supporting sell-side and buy-side advisory with independent financial analysis.
Business Brokers
Strengthen deal packages with third-party validated financial reports.
Engagement Timeline
A typical QoE engagement from kickoff to final deliverable.
Engagement
Scope definition, fee agreement, and information request list delivered.
Data Collection
Receipt and review of financial statements, tax returns, bank statements, and supporting documentation.
Analysis
Detailed analysis of revenue, expenses, EBITDA adjustments, working capital, and quality metrics.
Draft Report
Comprehensive draft report delivered for management review and discussion.
Final Deliverable
Final QoE report incorporating management feedback, ready for transaction use.
Frequently Asked Questions
Planning a Transaction?
Schedule a confidential consultation to discuss how a Quality of Earnings report can strengthen your deal.