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Quality of Earnings

Analysis of earnings quality and sustainability to support transaction decisions.

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The Real Story Behind the Numbers

Not all earnings are created equal. A quality of earnings analysis digs into the financials to separate sustainable, recurring earnings from one-time items, accounting adjustments, and noise. It's essential information for buyers, sellers, and lenders making transaction decisions.

What We Do

1

Earnings Normalization

Identifying and adjusting for non-recurring, non-operating, and owner-related items.

2

Revenue Quality Analysis

Assessing customer concentration, contract terms, and revenue sustainability.

3

Working Capital Analysis

Evaluating working capital trends and establishing appropriate targets.

4

EBITDA Adjustments

Calculating adjusted EBITDA that reflects true operating performance.

5

Trend and Variance Analysis

Analyzing historical trends and explaining significant variances.

Who Is This For

  • Buyers conducting due diligence on acquisition targets
  • Sellers preparing for buyer scrutiny and maximizing deal value
  • Lenders evaluating transaction financing
  • Private equity firms and investors analyzing deals

Meet the Team

Our quality of earnings team helps you understand what's really driving performance.

Evaluating a deal?

Let's look at the numbers behind the numbers.

Connect With Us Call: (610) 544-5900

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