Understanding quality of earnings and due diligence is a key component of assessing value during a transaction.

Whether you’re on the sell-side or the buy-side of a transaction, quality of earnings and due diligence provide in-depth and diverse knowledge that will empower you to confidently move forward with a transaction.

Buy-Side Due Diligence

Whether you’re a strategic buyer, private equity group, family office, or lender, buy-side due diligence helps ensure all information associated with the deal (financial, operational, tax, IT, HR) is up to date. This provides you with an accurate picture of what you’re buying while identifying opportunities and threats and understanding value.

Sell-Side Quality of Earnings

Sell-side or buy-side quality of earnings (QofE) is a part of financial due diligence that involves the analysis of an organization’s financial information, including:

• Normalized levels of EBITDA (earnings before interest, taxes, depreciation, and amortization) and the addbacks to bridge from reported EBITDA to adjusted EBITDA
• Fluctuations in annual and monthly financial information
• Revenue and gross margin by product, customer, or distribution segments
• Operating expenses and employee analysis
• Key balance sheet highlights
• Normalized levels of working capital needed to operate the business

When you work with Eide Bailly, you'll work with accredited professionals, including Certified Merger and Acquisitions Advisors and Certified Public Accountants, who dedicate 100% of their time to due diligence and quality of earnings projects.