QoE

A Phased Approach to Quality of Earnings

Not every deal requires full diligence on day one. Our QoE Framework is designed to scale with conviction. Buyers can begin with a focused Hygiene QoE to validate baseline earnings quality and key risks, then expand into a Full QoE out of preference or when the financial signal justifies deeper analysis.

Hygiene QoE
A targeted review designed to confirm earnings credibility, surface early risks, and determine whether a full QoE is warranted.

Full QoE
A comprehensive, lender- and investor-grade analysis of normalized earnings, sustainability, working capital, and deal risk used for valuation, negotiations, and financing.

What You Get

A clear, lender and buyer ready view of earnings quality, risk, and downside, built to support pricing, negotiations, and financing.

Normalized Earnings Analysis

A documented calculation of normalized EBITDA that removes owner add-backs, one-time items, and accounting noise, so you understand the earnings profile that actually transfers under new ownership.

Revenue, Margin, and Expense Quality Review

An assessment of revenue stability, margin drivers, cost structure, and sustainability, highlighting areas where reported performance may not persist post-close.

Working Capital & Cash Flow Assessment

Analysis of seasonality, collections, payables, and inventory dynamics to identify cash flow risk and avoid post-closing liquidity surprises.

Risk Matrix & Deal Structuring Implications

A prioritized summary of key risks, earnings sensitivities, and negotiation levers, translated into actionable guidance for valuation, LOI terms, and lender discussions.

Who This Is For

Strategic Buyers and Owner-Operators

Evaluating acquisition targets through an operational lens, focused on transferable earnings, working capital demands, and post-close performance.

Search Funds

Seeking independent validation of earnings quality, risk, and sustainability before finalizing valuation, structure, and financing assumptions.

Independent Sponsors

Requiring a defensible, third-party earnings analysis to support negotiations, investor discussions, and lender underwriting.

First-Time SBA Buyers

Needing clarity on normalized earnings, cash flow, and downside risk before committing to leverage, guarantees, and long-term ownership.

How It Works

Scope Alignment

We begin by confirming deal context, buyer objectives, and diligence depth. Based on deal stage and conviction, we align on either a Hygiene QoE or a Full QoE to ensure the scope matches the decision at hand.

Data Intake & Validation

You provide the core financial records and supporting schedules. We validate data completeness, reconcile inconsistencies, and identify early areas requiring clarification before analysis begins.

Earnings & Risk Analysis

We analyze normalized earnings, revenue and cost quality, working capital dynamics, and sustainability drivers focusing on what transfers under new ownership and what does not.

Findings & Implications

Key findings are translated into practical implications for valuation, deal structure, and lender or investor discussions. Risks are prioritized by impact and likelihood, not volume.

Decision Support

You receive a clear, defensible QoE report and a walkthrough of conclusions, so you can proceed, renegotiate, restructure, or walk away with confidence.

QoE