Quality of Earnings Advisory Services

Our Experts Can Help You Dive Deeper into Your Financial Analysis to Support Smarter Transactions

Quality of Earnings (QoE) engagements consist of a detailed financial review that assesses the accuracy and sustainability of a company’s earnings. It goes beyond GAAP financial statements to provide a clearer picture of adjusted EBITDA, risks, and adjustments that impact valuation.

Kreischer Miller QoE Advisory Services examines the numbers and goes beyond, taking the time to understand your business objectives and helping you navigate every stage of the deal—from strategy to post-merger integration. Partner with us to minimize risk and maximize value in your next transaction. We will guide you in selecting the right level of diligence – Full Scope QoE or QoE Lite – to match your transaction needs and budget.

Feature	Full Scope QoE	QoE Lite
	Best for strategic, private equity or institutional buyers; deals with significant financing or size; high risks and complexities	Best for early-stage diligence (pre-letter of intent), lower middle market deals; limited risk, complexities, and financing
Normalized EBITDA Adjustments	Normalize earnings by adjusting for one-time, non-recurring, or discretionary expenses and identification of deviations from accounting standards	EBITDA analysis customized for the individual user’s specific needs and concerns
Income Statement Analysis	Detailed trend analysis and understanding of revenue, margins, cost of goods sold, and operating expenses	High-level trend analysis with a limited focus
Customer and Supplier Analysis	Identify dependencies and concentrations of risks	May be excluded or reduced
Balance Sheet Analysis	Understanding obtained of all balance sheet accounts and related reconciliations	Focuses on specific balance sheet accounts based upon the level of significance
Net Working Capital	Monthly net working capital trend analysis, seasonal patterns, NWC target, and deal mechanics support	NWC analysis optional or presented at a summary level
Debt and Debt Like Items	Assess off-balance sheet liabilities, contingent obligations, and debt exposure	Typically excluded
Report Output	Comprehensive report and excel workbook highlighting key risks and considerations	Excel workbook deliverable with limited narrative

Tailored QoE Solutions for Every Deal

Our QoE and QoE Lite procedures are never one-size-fits-all — they’re tailored to the specific dynamics of each transaction. Whether it’s a full diligence process for a significant or complex acquisition or a streamlined QoE Lite for a smaller add-on or early-stage opportunity, our approach is customized to address your deal’s unique risk areas, financial drivers, and overall needs.