Quality of Earnings when selling your company

Quality of Earnings (QOE) represents the most accurate representation of a seller’s true earnings by looking at a company’s historical revenue, earnings, and adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization). Historically, this will include normalizing revenues and expenses that are either non-recurring or not part of future operations. Other areas of focus include concentrations of risk from significant customer relationships, vendors, safety, information technology, environmental, insurance, key employees, and benefits. QOE will also consider future ...

Surprises to selling a company in COVID-19

We had several acquisitions working in March when everything shut down and were not expecting to initiate any new engagements until late summer. However, we did start discussions on a new acquisition at the end of May. Surprisingly to us, the response was overwhelmingly positive and, as of last week, we have nine bona fide offers to acquire this company, five of which are at or above pre-COVID market value. How could this be?
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