Are you knee-deep in a merger or acquisition and starting to wonder if the deal is as good as it seems? Or trying to convince a prospective buyer that your organization is the revenue generator of their dreams?
Consider a quality of earnings review.
A quality of earnings review takes a deep dive into an organization’s financial and operating information to emphasize earnings before interest, taxes, depreciation, and amortization (EBITDA). The goal is, in part, to dig up any anomalies that might not give the clearest picture of an organization’s profit potential – like non-recurring revenue or inconsistently or inaccurately reported data. Getting under the surface for an in-depth look can infuse confidence in the purchase by highlighting the quality of the organization’s financial position and historical earnings performance.
Quality of earnings reviews are a normal part of due diligence in an acquisition – and must be done by an independent third party, like Barnes Dennig. A good review includes audit, tax, and general financial analysis skills, but also requires a detailed understanding of forecasting and trend analysis, and comparative market data. Our pros have it all.
See how we can help you avoid a bad deal or land a great offer. You’ll be glad you did.