A Quality of Earnings report helps buyers and sellers understand a company's true profitability using adjusted EBITDA. It doesn't set the sale price but prepares owners for financial due diligence by showing how their business looks on paper, filling the gap between operational knowledge and financial reality.
What is a quality of earnings report? At the end of the day, a quality of earnings report is a tool to assist a buyer or seller in learning how profitable their company is. What are the adjusted EBITDA numbers? How much can they sell their company for? It helps them. We don't pick the purchase price or the selling price, but our report will help them get ready to sell. We It's called QOE Prep because we really prepare sellers to get, to get ready for all the questions from the financial due diligence team on the buy side. We want them to know what their company is showing on a financial basis. Like business owners, they know their company back and forward, but when it comes to their numbers, they don't always know it.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
