Sell-Side Readiness & Quality of Earnings

Our team helps businesses streamline financial reporting, clean up operational inefficiencies, and ensure compliance with key regulatory and HR requirements. We conduct in-depth financial analysis, assess quality of earnings, and identify potential deal risks before they become obstacles. By addressing these areas early, we position sellers for a more efficient and competitive sale process.

A Quality of Earnings (QoE) analysis provides an in-depth look at a company’s true earnings by adjusting for non-recurring, unusual, or discretionary expenses. This ensures that buyers see an accurate representation of sustainable earnings, which directly influences valuation. A well-executed QoE analysis enhances credibility with buyers, reduces surprises during due diligence, and strengthens negotiation power.

Buyers scrutinize financial accuracy, revenue trends, customer concentration, expense management, HR compliance, and operational risks. They look for inconsistencies in financial statements, undisclosed liabilities, and potential red flags that could impact future performance. Addressing these concerns in advance through sell-side readiness ensures a smoother due diligence process and minimizes deal risks.

Ideally, companies should start preparing for a sale 12 to 24 months in advance to maximize value and mitigate risks. Early preparation allows time to optimize financials, address operational inefficiencies, and implement strategic improvements. However, even if a sale is imminent, proactive readiness efforts can still significantly impact the outcome by reducing surprises and improving deal confidence.