Quality of Earnings
QoE Full

For buyers with an executed Letter of Intent (LOI) seeking a detailed financial review, we offer a comprehensive analysis of the target company's financials, including a reconstructed Profit & Loss (P&L) statement. This assessment covers revenue quality, expense trends, and management adjustments, alongside a Proof of Cash analysis and review of bank statements.

Average Price

$8990+

Features

Comprehensive Financial Insight

Our comprehensive financial review service is designed for buyers who have executed a Letter of Intent (LOI) and need an in-depth analysis of the target company’s financials. This service includes a detailed reconstruction of the Profit & Loss (P&L) statement and a thorough assessment which are as follows:

Financial Methodology

Analyze the methodology for which the financial information for the Target is prepared, including any assumptions, adjustments, and allocations

Revenue Insights

Quality of revenue, expenses, key trends, earnings, management adjustments (add-backs)

Cash Verification

Review bank statements and perform Proof of Cash analysis 

Cost Trends

High-level analysis and commentary on trends in direct operating and SG&A costs incurred within the business 

Expense Anomalies

Inquire about out of period, nonrecurring, unusual and non-cash items and identify Customer and vendor concentratio

EBITDA Adjustments

Review management proposed adjustments to normalize EBITDA (if any) and review of balance shee

Working Capital

Analyze historical working capital trends, with a focus on seasonality, high/low points, potential normalizing items, and average run rat

Receivables Analysis

Analyze a summary of accounts receivable, including aging and bad debt statistics

Inventory Review

Analyze the composition of inventory and inquire about: Target’s inventory costing methodology, reserve policies, and write-down history, broken down by inventory-type 

Payables Analysis

Analyze a summary of account payables, including aging statistics. Inquire about normal and special credit terms (including rebates),  significant past due payables and disputes with suppliers 

Asset Review

Analyze a summary of prepaid expenses, deferred cost of sales and other current assets to obtain an understanding of related impact on  future earnings

Liability Assessment

Identify and assess off-balance sheet liabilities, accrued liability, and other environmental or litigation related liabilitie

CAPEX Trends

CAPEX Analysis: Analyzing capital expenditure trends and requirements

Tax Overview

Light tax review with the aim to identify any potential red flags only and not a full tax diligenc

Data Requests

Prepare and submit additional data requirements and questions relevant to our scope

Business Expertise: QoE

With over 15 years of experience in the field, our team of seasoned professionals understands the complexities of small business transactions. We focus on providing in-depth Quality of Earnings analyses and comprehensive financial due diligence, ensuring that sellers present their businesses accurately and that buyers can trust the financials presented to them.

1+

Years Experience

1+

Clients Satisfaction

1%

Satisfaction

1+

Collabration

Service

Detailed Financial
Clarity

For buyers who have executed a Letter of Intent (LOI) and need a comprehensive review of the target company's financials, including a detailed reconstruction of the Profit & Loss (P&L) statement, we offer a thorough assessment. This review is tailored for presentation to private equity investors, banks, SBA lenders, and other non-financial stakeholders. Our goal is to provide clear and actionable insights to support your due diligence process and facilitate informed decision-making.

Service

Detailed Financial Clarity

For buyers who have executed a Letter of Intent (LOI) and need a comprehensive review of the target company's financials, including a detailed reconstruction of the Profit & Loss (P&L) statement, we offer a thorough assessment. This review is tailored for presentation to private equity investors, banks, SBA lenders, and other non-financial stakeholders. Our goal is to provide clear and actionable insights to support your due diligence process and facilitate informed decision-making.

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Your Partner for Confident Business Transactions

Whether you're a business owner preparing for a sale, a buyer seeking assurance, or a broker facilitating a deal, we're here to help. Contact us today to learn how QoE Group can support your next business transaction.

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