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Quality of Earnings
What earnings can you reasonably rely on?
We examine reported earnings, test the supporting evidence and identify the adjustments that matter to the acquisition. You receive a clear earnings assessment and the full Excel databook behind it, supporting your review and discussions with your lender.
Also included in every Transaction Assessment. Not sure a QoE is the right service? Discuss your deal and we will recommend one. See the illustrative Cedar QoE
What a QoE finds · Project Granite, illustrative
Broker-presented EBITDA: $1,540k. Illustrative adjusted EBITDA: $1,282k.
Three of the seller’s add-backs held. Three adjustments the seller left out took $245k back. At a $10.0M ask, that moves the multiple from 6.5x to 7.8x.
At the same asking price, lower adjusted EBITDA means a higher acquisition multiple.
EBITDA per books, FY2025
$1,330k
CEO pay to market
+$60k
ERP migration, one-time
+$85k
Legal settlement, one-time
+$40k
Executive search, part recurring
+$12k
Development labor expensed
−$120k
Lost top-10 client, run-rate
−$95k
Bonus under-accrual
−$30k
Illustrative adjusted EBITDA
$1,282k
What you receive
A clear earnings assessment, with the supporting analysis available for your review and discussions with your lender.
Cover, add-back schedule and earnings bridge from the illustrative Cedar QoE. Read the web summary, full report and databook.
What we need from you
After you sign, through a secure upload link.
- Three years of monthly P&L and balance sheets, plus the latest year to date
- Business tax returns for the same years
- Bank statements for the operating accounts
- The seller’s add-back schedule and support
- Revenue by customer, payroll register, AR and AP aging
- The LOI and, if you have it, the lender’s term sheet
Fee
From $8,000, fixed before we start.
The “from” fee applies to acquisitions under $1M with no complexity adjusters. Your quote states the exact fee, set by the acquisition price and the complexity of the deal. Fees never depend on whether you close.
Typical delivery: seven business days after we receive complete information and confirm the scope. Your quote states the expected delivery date. Complexity or missing information may affect delivery. Expedited scheduling, where available, is quoted separately.
Questions
Will my SBA lender accept your report?
We confirm your lender’s scope and reporting requirements at the outset. Any permitted reliance is addressed separately in the engagement and reliance-letter terms. Acceptance remains subject to the lender’s review.
Do you need the financials to quote?
No. Price, industry and a few yes-or-no questions are enough. Documents come after you sign.
What if the numbers turn out different from the form?
Your quote lists the facts it relies on. If the documents differ materially, we re-quote and you choose to continue or cancel with a refund for work not done.
Do you work with sellers?
Yes. A sell-side QoE before going to market helps an owner defend the asking price and avoid surprises in a buyer’s diligence. We advise one party per deal, never both.
Does your fee change if I don’t close?
No. Fees are fixed and never depend on whether the deal closes.
Understand the earnings before you commit.
Get a QoE quote