In the world of middle-market mergers and acquisitions (M&A), “Quality of Earnings Reports,” or “QoEs,” hold significant importance for potential sellers, potential buyers, and other stakeholders. Despite the critical role that QoE reports play in M&A transactions, most business owners are not familiar with them. This guide will teach you the basics of QoEs, describing what they entail, when they occur, who requires them, and why they are essential in today’s middle-market M&A landscape.
This guide is divided into the following sections:
- Introduction to Quality of Earnings Reports
- What to Expect in a Quality of Earnings Engagement
- Common Quality of Earnings Adjustments
- Quality of Earnings vs. Financial Statement Audits – What’s The Difference?
- The Importance of Net Working Capital in Quality of Earnings
