Quality of Earnings Report

Whether you are acquiring a business or selling your own, Clark Nuber’s Quality of Earnings (QoE) Group will help you ensure you’re not leaving any money on the table.

Supporting You as a Buyer

As part of the due diligence process during an acquisition, Clark Nuber will provide you with a comprehensive QoE report, which provides a detailed analysis of a target company’s performance and trends across a variety of areas.

Our QoE report typically includes a review of EBITDA (earnings before interest, taxes, depreciation, and amortization), which is often used as a basis for determining the value of privately held companies. We will identify and adjust for nonrecurring activity to paint a picture of expected post-deal earnings.

We’ll also look at:

  • The components of working capital
  • Concentrations and risks associated with customer and supplier relationships
  • Operating cash-flow analysis
  • Trend and seasonality analysis
  • State and local tax concerns

All this comes together to present you with an easy-to-grasp, “big picture” view of the target company’s operating trends and financial health.

Supporting You as a Seller

QoE reports help buyers know they are making a wise purchasing decision. But as a seller, the QoE report provides you with the opportunity to tell your story in a comprehensive way, enabling you to open a competitive sales process when going to market.

In addition, similar to getting an inspection on a house before putting it on the market, the QoE process can identify flaws in your business and allow you to correct them prior to due diligence from the buyer. Having an independent study performed will also support, and potentially shorten, the due diligence performed by the buyer.

Finally, our QoE services provide you with another informed financial expert that can dialogue with the buyer’s due diligence team.

Next Steps

Clark Nuber’s deep expertise in many specialty areas, such as state, local, and international tax, will add value to your QoE reports. And our one-firm approach means you receive personal attention, at an affordable price.

Ready to buy or sell? Contact our professionals today for a consultation.

Ready to talk?

Contact us to get the conversation started.