ClearRidge’s Quality of Earnings (QOE) analysis ensures you acquire with confidence. Since 2008, our QOE services have dissected countless targets — delivering quality of earnings reports that reveal true earnings.
Our advisors look at a company’s historical revenue, earnings, and adjusted EBITDA. 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 earnings as it relates to external drivers of the business, backlog and pipeline.
Our QOE work also analyzes trends, fluctuations and variances month-over-month, analyzing the drivers that decrease or increase revenues, costs and margin. QOE will analyze business data, financial data and general ledger accounts that would not be readily apparent from internally prepared financial statements.
A QOE report is a requirement of the buyer’s Investment Committee, Board of Directors and Trustees in their determination to fund and close a transaction. A QOE report is also reviewed by banks and other lending sources prior to their decision to fund the acquisition.
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Contact ClearRidge’s M&A and due diligence experts at 918.392.2900 or email a Managing Director. With offices in Tulsa, Oklahoma City, Dallas, and Denver, we’re your local business sale and acquisition advisors.
