Show buyers the real earnings power.
A Quality of Earnings analysis separates durable, recurring profit from noise — giving buyers confidence and giving sellers control of the narrative before diligence begins.
What a Quality of Earnings report actually does.
A QoE is an independent analysis of the sustainable earnings of a business. Rather than taking the income statement at face value, it tests whether reported profit is real, repeatable, and free of one-time distortions — the single biggest question on a buyer's mind.
Buyers — especially private equity firms and strategic acquirers — request a QoE to validate the numbers before they commit capital. Sellers who prepare one proactively control the story, surface issues on their own terms, and keep deals from stalling in diligence.
Why prepare one before you sell?
- Control the narrativePresent normalized earnings on your terms, not the buyer's.
- Defend your valuationA documented EBITDA bridge supports the multiple you're asking for.
- Avoid re-tradingSurface issues early so buyers can't use them to chip the price later.
- Move fasterA clean, organized package shortens diligence and time to close.
What we examine.
A rigorous QoE goes well beyond the income statement. We pressure-test the drivers that determine whether earnings are real and sustainable.
Normalized EBITDA
Build a clear, defensible bridge from reported to adjusted earnings.
Recurring vs. non-recurring
Separate sustainable profit from one-time and owner-specific items.
Working capital
Analyze trends and seasonality to establish a fair, supportable peg.
Revenue quality
Assess how durable, contracted, and repeatable the revenue really is.
Customer concentration
Quantify dependency risk across the top of the customer base.
Margin analysis
Explain margin trends by product, segment, and period.
Financial reporting quality
Test whether the books reconcile and the accounting holds up.
Cash proof & trends
Tie earnings to cash to confirm profit is converting as reported.
Built for both sides of the table.
Private Equity Firms
Search Funds
Independent Sponsors
Strategic Acquirers
Founder-Owned Sellers
Know your number before a buyer challenges it.
We'll prepare a Quality of Earnings analysis that stands up to institutional scrutiny — and helps your deal close.