Quality of Earnings Report & Risk Engineering

What Is QoE: Quality of Earnings Report Explained
A Quality of Earnings Report (QoE) is a key document in the acquisition or merger process.

Historic tax returns and yearly financial reports may not tell the full story of a company's health. So as part of their due dilligence, the buyer (and ocassionally the seller) may employ an independent third party to inspect the financial statements of the business being sold.

The resulting document is called a "Quality of Earnings Report". It provides an adjusted EBITDA - a realistic picture of the annual revenue the buyer can expect from the purchase of this business.

KEY MOMENTS:
[00:00-02:15] Beyond the Numbers: Discover what a QoE Report actually is and why it matters more than audited financials in M&A transactions. Shane explains how this independent analysis reveals "what's really happening in this business" beneath surface-level financials.

[02:15-04:27] Financial Truth-Finding: Learn the critical differences between tax returns, standard financials, audited statements, and the deal-focused QoE report. Shane breaks down how a QoE examines revenue quality, customer concentration, and sustainability factors that other documents miss.

[04:27-06:43] Buyer Protection: See how QoE reports provide buyers with leverage, accurate valuations, and risk identification before closing - giving them the confidence to move forward with multi-million dollar deals.

[06:43-09:05]** Lender Confidence: Understand why lenders demand these reports and how they use them to underwrite based on sustainable cash flow, not misleading headline numbers.

[09:05-End] Broker Success Strategies: Shane reveals how to use QoE reports to accelerate deals, establish common ground between parties, and create deal certainty that gets transactions closed.

Don't leave your next deal to chance. Visit CommercialLoanBrokerInstitute.com today to access expert training, resources, and support that will help you leverage Quality of Earnings Reports to close bigger deals faster - no matter where you are in your commercial loan broker journey.