Performing thorough due diligence is a must in M&A transactions. The acquirer will often want a Quality of Earnings (Q of E) report prepared by an independent party as part of the due diligence process unless the acquisition is inconsequential in magnitude. A Q of E report focuses on the economic earnings power of the target’s business. The Q of E report’s goal is to provide assurance that the earnings are sustainable and will translate into cash flows. Q of E reports are often focused on sustainable earnings before interest, taxes, depreciation and amortization (EBITDA) or free cash flow (FCF).
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.