Quality of Earnings
Accurate Quality of Earnings for Middle Market Business Deals
A reliable Quality of Earnings report for lower middle market transactions. For buyers or sellers, we give you a clear Normalized EBITDA calculation. We trace every general ledger adjustment and perform a deep working capital analysis and cash flow verification. Our final document is ready for a full due diligence accounting review.
How ACE CPAs protects your business deal price
Four key stages that decide if your company sells at the exact amount you agreed upon.
The buyer team starts checking records.
They find hidden problems in your books and you learn about them during a tense call with no answers ready.
Your buy-side QoE advisory or sell-side financial review spots the issue months early so you fix it.
An expense add-back faces questions.
You know an item was personal, but you lack receipts, so the money comes right off your final price.
Every general ledger adjustment links straight to firm records. The buyer reviews it and accepts the proof.
Working capital targets face debate.
The final number gets argued over at the closing table based on memory, and the shift hurts you.
A complete working capital analysis sets the target using clear historical files built beforehand.
Financial reviews take too long.
Weeks pass while accountants rebuild files, the deal loses momentum, and buyers lower their offers.
Your quality of earnings report and normalized EBITDA calculation are ready on day one, keeping the process fast.
What your final document includes
- Normalized earnings calculationEvery cost add-on is checked against your books. When you need a solid Normalized EBITDA calculation, we link every item back to source proof so buyers can trust your numbers.
- Income and customer reviewWe study customer habits and sales consistency. This helps build a reliable Quality of earnings report showing if your profits will stay strong after the sale.
- Normalized working capital reviewA careful working capital analysis prevents price fights at closing. We look at monthly numbers so your final agreement rests on solid history instead of guesswork.
- Liabilities and hidden debtWe check unbilled expenses and unpaid items that buyers count as debt. Every single general ledger adjustment and net debt analysis keeps surprises away.
Managing project scope and financial complexity
Complex company setups, multi-state business filings, and ongoing customer contracts add extra layers to any evaluation. We outline these details clearly inside our initial proposal instead of springing surprises on you later during your buy-side QoE advisory or sell-side financial review.
If your target company's financial ledgers need cleanup before a proper Quality of earnings report or working capital analysis can happen, we spot it early and tell you before you sign any agreements.
Transaction advisory for buyers and sellers
- Selling your businessPrepare your records before hitting the market so any issues show up in your own Sell-side financial review instead of the buyer's paperwork. This gives you time to fix errors and build clear answers.
- Buying a businessCheck the seller's claims after signing an agreement. We verify every Normalized EBITDA calculation and confirm your investment through a strict Quality of earnings report and working capital analysis.
Other services
Bring three months of statements.
Thirty minutes with a licensed CPA. We go through what you have and tell you the first thing we would change, whether or not you engage us.
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