Quality of Earnings (QofE)

No skeletons. No surprises.
Just the real story behind the numbers.

Before you close a deal or go to market, you need clarity. What’s real, what’s repeatable,
and what could come back to bite you. A Quality of Earnings report gives you just that.

Unlike a financial audit, QofE digs into the economics of the business. It looks past the GAAP
presentation to assess whether earnings are actually sustainable, and whether risks are
lurking just below the surface.

Buy-Side: Validate Before
You Commit.

If you’re acquiring a business, the financials you receive are only part of the
picture. We dig into the quality and consistency of earnings, normalize EBITDA, evaluate working capital trends, and flag areas that could impact valuation or deal terms. Our QofE reports are built to help you negotiate smarter, avoid unpleasant surprises post-close, and move faster with confidence. We work on your timeline and with your model in mind.

Sell-Side: Defend Value &
Drive the Process

Thinking about a sale? A sell-side QofE puts you in control. We help you identify and clean up potential red flags in advance, normalize earnings, and prepare supporting schedules that back up your story. You walk into diligence prepared—with fewer surprises, less distraction for your team, and stronger footing in negotiations. We’ve helped companies turn pre-sale prep into millions in preserved value.

What We Cover

Adjusted EBITDA and normalization
Revenue composition and customer concentration
Margin trends and cost structure
Working capital analysis and target setting
Balance sheet quality and exposure risks
Carve-out readiness and standalone adjustments

How We Work

We work quickly, integrate with your team, and focus on what matters. No bloated reports or generic commentary, just clear, relevant analysis that helps you protect value and keep deals moving.