The Owner’s Guide to Quality of Earnings

The audit certifies the past; the quality of earnings analysis prices the future. This guide walks through the analysis that decides whether the price on a letter of intent survives: the add-back schedule, revenue quality, the proof of cash, working capital, and the way findings become deal terms — on whichever side of the transaction you sit.

Inside the guide

• The add-back schedule: what survives diligence, and what each line is worth
• Revenue quality, the proof of cash, and net working capital
• Inside the report — and how findings become price, escrows, and earnouts
• Buy-side and sell-side: testing before you wire, and getting diligenced first
• A QoE readiness checklist and a working glossary of deal terms