Quality of Earnings Analysis
Helping Searchers from LOI to Closing on Cash-Flowing Businesses
We help searchers mitigate risks and identify red flags so they don’t overpay for their business.
Helping Searchers – Before and Post Transaction
Get started todayPre LOI Support
Assit searchers pursue the right deals by analyzing the financials of target businesses and industry multiples.
Assist in calculating Debt-Service Coverage Ratio (DSCR) to ensure its above the SBA’s lower limit (typically 1.25)
Assist searchers by drafting the LOI and calculating Net working capital adjustment (PEG amount)
Go beyond Adjusted EBITDA & Calculate Free Cash Flow (FCF) to determine the true cash sustainability of the business.
Post LOI Support (QoE)
Validate target business financials and ensure accuracy in the 3-statement Model.
Reconcile tax returns, Financial statements, and schedules.
Analyzing the monthly P&L, identifying significant trends, reviewing earnings, management adjustments (add-backs), and the balance sheet to substantiate the adjusted EBITDA.
Develop a 24-48 month QoE model to confirm adjusted EBITDA.
Analyze revenue, COGS, OPEX, Cash Proof, Price Volume, Net Working Capital, and Cashflow Forecast.
Post-Transaction CPA Services
Help you choose the most suitable legal entity structure to save on taxes in the long run.
Allocate the purchase price in alignment with accounting standards and tax optimization objectives.
Set up your accounting system to keep your finances accurate and organized.
Implement the findings of our QoE report and identify areas of improvement.
Implement tax strategy to boost bottom line and generate generational wealth
Providing a one stop solution for your books, payroll & taxes
QoE reports delivered in 2025
Closed deals in 2025
Reviewed transactions
A decade of Big 4 insight into Wall Street dealmaking
Years of Excellence
Experience really does matter when it comes to Quality of Earnings analysis, and fortunately, we have plenty of that at Prosolve CPA. I spent nearly a decade at Deloitte, focusing on Buy-Side due diligence, primarily working with Wall Street clients. This rich experience forms the foundation of Prosolve CPA. Our robust background in buy-side due diligence makes our focus crystal clear—helping searchers and entrepreneurs make smart, informed decisions. We've seen firsthand how tailored advice can shape successful deals. In fact, this year alone, Prosolve CPA has successfully assisted over 15 self-funded and traditional searchers —offering them customized guidance.
How Our QoE analysis Helps You Avoid Buying The Wrong Business
Revenue Analysis and Recognition
We assist searchers in evaluating revenue recognition practices during due diligence to ensure accurate financial representation. By analyzing accounting policies, customer contracts, and sales processes, we identify potential discrepancies and assess the sustainability of revenue streams, safeguarding searchers from overvaluation and financial misrepresentation.
Net Working Capital
We help searchers accurately evaluate Net Working Capital (NWC) during acquisitions, ensuring a fair valuation and protecting against hidden costs. By thoroughly analyzing current assets and liabilities, identifying essential adjustments, and establishing a balanced NWC peg, we safeguard buyers from overpaying and preserve their liquidity after the deal closes.
Verify Addbacks to Adjusted EBITDA / SDE
We scrutinize addbacks to EBITDA, ensuring only valid adjustments like non-recurring, personal, or discretionary expenses are considered. This prevents inflated valuations and uncovers potential red flags. Our analysis safeguards searchers from overpaying and ensures a true reflection of the business’s earning potential.
Proof of Cash
We conduct Proof of Cash analyses to confirm the accuracy and reliability of a business's financial records during acquisitions. By thoroughly examining cash inflows, outflows, and bank reconciliations, we uncover discrepancies, hidden risks, or possible fraud—empowering buyers to make confident, informed decisions based on trustworthy financial data.
Searchers from World-Class Schools Choose Us
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Industries We’ve Closed Deals In
Diverse Sectors, Proven Success
E-commerce
Janitorial Services
Pet Care
Aerospace
E-commerce
Janitorial Services
E-commerce
Janitorial Services
Pet Care
Aerospace
E-commerce
Janitorial Services
E-commerce
Janitorial Services
Pet Care
Aerospace
E-commerce
Janitorial Services
Healthcare
HVAC Industry
Manufacturing
Healthcare
HVAC Industry
Manufacturing
Healthcare
HVAC Industry
Manufacturing
Healthcare
HVAC Industry
Manufacturing
Healthcare
HVAC Industry
Manufacturing
Healthcare
HVAC Industry
Manufacturing
Facilities Management
Distribution
Tech
Facilities Management
Distribution
Tech
Facilities Management
Distribution
Tech
Facilities Management
Distribution
Tech
Facilities Management
Distribution
Tech
Facilities Management
Distribution
Tech
Still have questions?
Your common questions, our straightforward answers.
How long does it take to complete a QoE?
Typically, we advise our clients to plan for around 4 weeks to complete a quality of earnings review during due diligence. However, if the seller is responsive, the process can often be completed within 3 weeks.
Is my deal too small for a quality of earnings review?
Investing in a quality of earnings report can be a substantial investment.
But think of it this way: unless you’re comfortable with the risk of losing the entire business purchase amount, it’s wise to bring in an expert to perform the quality of earnings(QoE) before you move forward.
When should I reach out to you?
We’re available to talk at any point during your business search journey. Ideally, you should reach out to us when you’re close to submitting the Letter of Intent (LOI) on a deal.
Does the QoE report provide a buy or don’t buy recommendation?
A QoE report doesn't make the buy/don't buy decision for you. Instead, our QoE analysis reviews revenue quality, EBITDA normalization, working capital requirements, and cash flow patterns in detail, enabling you to make an informed investment decision and assess whether the valuation is justified.
How much does a Quality of Earnings(QoE) cost?
The cost of a quality of earnings engagement depends on several factors. It varies based on the size and complexity of the transaction, the scope of work, and how far back we need to review the financials.
Key pricing considerations include:
• Financial Complexity, businesses with multiple entities, heavy accrual entries, job costing systems, inventory tracking, or mixed accounting methods require deeper analysis.
• Data Sources, companies with many bank accounts, credit cards, and external platforms take more time for reconciliation and verification.
• Quality of Financial Records, clean and well maintained books reduce workload. Disorganized books or inconsistent data increase time and cost.
• Level of Detail Required, a basic review is very different from a deep examination of revenue streams, margin performance, customer risks, and cash flow modeling.
• Delivery Schedule, faster turnaround increases pricing because of tighter timelines.
• Lookback Period, reviewing three to five years of financials requires more work than a standard two year review.
• Final Deliverable, a simple databook costs less than a polished investor level report with summaries and visual analysis.
We provide a personalized quote based on your specific deal and requirements.
Do you charge a fixed or flat fee?
We use fixed-fee pricing for all QoE work — no hourly billing or surprises.
Before we begin, you'll have a detailed scope and flat price based on your deal's complexity and timeline. This lets you plan your budget confidently and allows you to focus on closing your deal, not our costs.
Can we adjust the project scope if needed?
Absolutely, we'll discuss any adjustments and provide transparent pricing before moving forward.
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