Quality of Earnings
Tests whether reported EBITDA holds up. We normalize for owner-related, one-time, and non-recurring items, tie results to cash, and show the sustainable earnings a buyer is actually paying for.
Quality of Earnings · Financial Due Diligence
Know the story behind the numbers.
Senior-led Quality of Earnings and financial due diligence for lower-middle-market buyers, investors, lenders, and sellers. Practical analysis of what a business really earns, and what that means for the deal.
Selected experience
- Transactions
- 175+
- Transaction value
- $2.5B+
- Diligence experience on our team
- Big 4
What we do
Are the earnings real, and what else should change the price?
Two questions sit behind every deal. Quality of Earnings and financial due diligence answer them.
Financial Due Diligence
Looks beyond EBITDA to net working capital, debt and debt-like items, customer concentration, and the other findings that should shape price, structure, and terms.
Who we work with
Buy-side and sell-side, and the professionals around the deal.
Buyers and searchers
Know what you are buying before you commit your capital and your next several years.
Independent sponsors
Diligence that holds up in front of your capital partners and lenders.
Private equity and investors
Focused, senior-level support for lower-middle-market platforms and add-ons.
Business owners and sellers
Find and address issues before a buyer does, and go to market with numbers you can defend.
SBA and other lenders
An independent view of earnings quality and cash flow behind the loan.
M&A advisors and brokers
A reliable diligence resource for your clients that helps keep deals on track.
CPAs and accountants
A transaction-focused complement when a client is buying or selling a business.
Attorneys and deal professionals
Financial findings framed for the purchase agreement, from working capital to debt-like items.
Why The QofE Guy
The rigor of a diligence team. The attention of a founder.
Senior-led, start to finish
Patrick is involved in every engagement, from scoping through findings, supported by a team that includes Big 4 diligence experience.
Built for the lower middle market
Scope and process sized to the deal, so you get the depth you need without a big-firm process you do not.
Focused on what moves the deal
Findings framed around price, structure, and terms: earnings, working capital, and debt-like items, not a binder of observations.
Clear, early communication
Issues are raised as they are found, so there is time to act on them before closing.
Services
Scoped to the deal and the question you need answered.
Pre-QofE (Red Flags)
A fast read on potential deal-breakers before you go deeper.
Validation
Proves the earnings and revenue story after a Pre-QofE.
Lite QofE
Pre-QofE and Validation in one engagement, priced below running both.
Cash Proof
Checks reported revenue and expenses against actual bank activity.
Full QofE
A formal report built to support valuation, financing, and closing.
Hourly Transaction Advisory
Senior-level help on specific questions, billed hourly.
Working on a deal?
Let's talk about scope, timing, and what you need from diligence.