PDF Download: The Fundamentals of QoE
A Quality of Earnings (QoE) analysis is a deep dive into the financial statements to understand where the business generates value. The QoE is not an audit but rather a detailed financial analysis, and the two are not mutually exclusive but complementary.
An audit is balance sheet focused, whereas the QoE is concentrated on the income statement, emphasizing a company’s true ongoing earnings and cash flow potential, often measured as EBITDA. Both focus on the importance of getting the accounting correct, but the QoE’s primary goal is to allow a buyer to gain a detailed understanding of the underlying earnings power of the company.
Learn more in our blog, The Fundamentals of QoE: Why Lenders & Buyers Should Take the Deep Dive.