Independent QoE analysis for buy-side and sell-side M&A transactions — delivering accurate normalized EBITDA, working capital benchmarks, and deal-critical financial insights across South Florida.
A Quality of Earnings (QoE) report is an independent financial analysis of a target company's historical earnings that goes well beyond what a standard audit or financial statement review provides. It answers the question every deal participant needs answered before signing: is the EBITDA we're pricing off of real, recurring, and representative of the business going forward?
A well-executed QoE identifies adjustments — both up and down — to reported earnings, flags non-recurring items, examines revenue recognition practices, evaluates working capital trends, and surfaces financial risks that could affect deal pricing, structure, or terms.
Commissioned by the acquirer to independently verify the target's earnings and financial condition before committing to a purchase price.
Prepared on behalf of the seller prior to going to market. It anticipates buyer diligence questions and presents EBITDA adjustments in a defensible, well-documented format — reducing deal timeline and supporting the seller's price expectations.
A clear, line-by-line reconciliation from reported earnings to adjusted EBITDA — owner compensation in excess of market, related-party arrangements, non-recurring items, and one-time professional fees.
Assessing the sustainability, predictability, and quality of the revenue base — recurring vs. non-recurring revenue, customer concentration, contract terms, and seasonality.
Establishing a defensible normalized peg and flagging trends or anomalies that may affect the closing statement — trailing working capital trend, AR aging, inventory valuation, and seasonality adjustments.
A comprehensive review of balance sheet items buyers typically characterize as debt-like — funded debt, deferred revenue in excess of normalized levels, and earn-out or deferred consideration obligations.
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Platform acquisitions and add-on targets requiring rigorous, time-sensitive financial diligence.
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Corporate development teams evaluating targets where independent financial diligence checks management projections.
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Business owners preparing for a sale who want to present their earnings story credibly.
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Senior lenders and credit investors requiring independent verification of borrower earnings quality.
We deliver focused, actionable QoE reports on deal timelines. Contact us to discuss scope and availability.