Overview of our standard Quality of Earnings process

Timeline: 3 – 4 Weeks

Coverage: Max 5 Years Historic Data

The Prairie Crossing Three Component Test: Accuracy, Credibility, Sustainability.

Deliverables: PDF Report, Seller’s Discretionary Earnings Excel Worksheet.

Risk and Risk Mitigation Assessment.

Key Takeaways and Growth Opportunities.

Unlimited phone call hours on questions/discussions regarding the delivered QofE.

Our Approach: The Prairie Crossing Three Component Test

Accuracy

Evaluate the precision of financial statements by cross-referencing them with external data sources such as bank statements, vendor dashboards, and tax filings. This ensures the financial information provided is consistent, reliable, and free from discrepancies.

Credibility

Assess the business’s key performance drivers by comparing them to industry benchmarks and ideal scenarios. This includes analyzing risks such as key person dependencies, supplier and customer concentrations, internal controls, and governance practices to determine the business’s operational integrity which impacts financial credibility.

Sustainability

Identify and adjust for non-recurring, non-operating, and unsustainable transactions. This process ensures that the financials reflect the true ongoing performance of the business, providing a realistic foundation for valuation and decision-making.

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