The decision to conduct a Quality of Earnings analysis will play a role in the success of a transaction for buyers and sellers. The purpose of a Quality of Earnings analysis is to maximize transaction value and to minimize any unexpected developments and surprises.
Our team at Johnson O’Connor has years of experience with QofEs and has come up with this list of benefits as you consider your next move.
- Ensure the integrity of the financial and non-financial information during diligence; such transparency builds trust and increases chances for a successful result.
- Minimize surprises and delays by flushing out pertinent issues.
- Enhance (or diminish) value based on filtering out add-backs, one-offs, and other shareholder-specific items.
- Leads to a smoother transition process post-closing.
- Identify factors driving company success, or areas that need quick remediation.
- Demonstrates to lenders and investors financial and earnings sustainable, thus enhancing negotiation power when you are seeking financing or investments.
Contact us at any point for a discussion on how we can help you reach your financial goals with a Quality of Earnings analysis. We are always available to you.
