Answers to the most common questions from buyers, searchers, brokers, and sellers considering a Quality of Earnings report.
A Quality of Earnings (QoE) report is an independent financial analysis that examines whether a business's reported earnings accurately reflect its underlying economic reality. It's not an audit — it's a focused investigation into the quality and sustainability of a company's profits.
The central output is an adjusted EBITDA figure — earnings cleaned of non-recurring items, owner-specific expenses, and distortions — that a buyer and their lender can rely on to underwrite a deal. Read the full explainer →
An audit is a formal attestation — an accounting firm certifying that financial statements comply with accounting standards. A QoE is an investigative analysis focused on economic reality, not compliance.
QoE analysts ask different questions than auditors. Not "are these numbers GAAP-compliant?" but "are these earnings real, recurring, and representative of what a buyer will own?" For most private business acquisitions under $50M in revenue, a QoE delivers far more decision-relevant information than an audit would.
Earnings quality refers to how reliable, recurring, and representative a business's reported profits are. High-quality earnings come from sustainable revenue sources, reflect real cash generation, and hold up across multiple periods. Low-quality earnings may be inflated by one-time events, pulled-forward revenue, aggressive addbacks, or accounting choices that won't persist under new ownership.
A QoE report systematically measures earnings quality and translates it into a number — adjusted EBITDA — that a buyer can actually underwrite.
Yes — and QoEPro is built specifically for your situation. ETA searchers and independent sponsors are our primary clients. You need senior-led diligence scaled to the deal, with a clear scope and timeline.
QoE Lite is designed for simpler transactions that need a focused annual review, while Standard QoE adds monthly analysis, reconciliations, working capital, and transaction-focused findings. Lender requirements vary, so if a lender has requested a QoE, confirm its required scope before ordering.
Absolutely — that's our primary use case. Buy-side QoE engagements are exactly what QoEPro is built for. We approach the seller's financials with independent skepticism, looking for the risks and discrepancies that could affect your purchase price, deal structure, or post-close performance.
Yes. A sell-side QoE was commissioned by the seller and is designed to present their financials in the most favorable defensible light. It's a marketing document as much as a financial one. Accepting a sell-side QoE in lieu of your own is the equivalent of using the seller's home inspector when buying a house.
A sell-side QoE can be valuable as a starting point — use it as a reference to understand what the seller is claiming, not as a substitute for independent analysis. Read more: Buy-Side vs. Sell-Side QoE →
Yes. QoEPro has dedicated buy-side and sell-side engagement paths. Sell-side work helps owners pressure-test adjusted EBITDA, document addbacks, understand working capital, and identify issues before buyer diligence begins. We will not represent both buyer and seller on the same transaction.
Start with your side of the transaction. Buy-side offers CIM Snapshot ($500), QoE Lite ($3,000), Standard QoE, and Comprehensive QoE. Sell-side starts at QoE Lite ($3,000); there is no sell-side CIM Snapshot. CIM Snapshot and QoE Lite can be purchased directly when the situation fits the fixed scope. Standard and Comprehensive begin with a short deal intake, with the final fee fixed upfront after scope is confirmed. If the books are messy, the business is complex, or a lender has specific requirements, send the deal details before paying. We can schedule a call if it will help clarify the scope.
The key difference is the depth of analysis. QoE Lite covers 3 years of annual financials — it gives you a clean adjusted EBITDA and addback schedule but does not drill down to the monthly level. It's designed for LOI stage when you need credible numbers fast.
Standard QoE covers 3–5 years on monthly financials — it can identify seasonal patterns, revenue timing issues, and trends that only show up when you look at the numbers month by month. It also adds working capital peg analysis, key reconciliations (cash proof, payroll rec, book-to-tax rec), and debt-like items — the full set of outputs a lender will scrutinize.
Yes. Available add-ons include:
Note add-ons in your intake form. We can discuss them on a call if needed.
For Buy-Side CIM Snapshot, Buy-Side QoE Lite, and Sell-Side QoE Lite, you can pay online through QuickBooks/Intuit and then complete intake. Standard and Comprehensive engagements begin with a short deal intake so we can confirm the business, records, timeline, and required analysis before invoicing. We schedule a call when it is useful to finalize scope. Work begins once scope, payment, and required documents are in place. Every engagement includes delivery of the agreed report/workbook and a discussion of the findings.
Every QoEPro engagement is authored by a CFA charterholder with live lower middle market deal experience. We don't staff engagements to junior analysts or offshore teams. QoEPro is a service of Lilac Street Capital LLC, an M&A transaction advisory practice based in Austin, Texas.
Every report includes a 30-minute debrief call where we walk through the findings, explain the methodology behind each adjustment, and answer any questions your lender, attorney, or investors may have. One round of revisions is included if new information is provided or if there are factual corrections needed.
Requirements vary by tier:
We'll confirm the exact documentation checklist during intake, and by call if needed, before work begins.
Often yes — and messy books are common in lower middle market businesses. We're experienced at working with QuickBooks exports, compiled financials, and spreadsheet-based records. We'll let you know during the scoping process if the documentation is too incomplete to support a meaningful analysis, before you've committed to payment on higher-tier reports.
After ordering, you'll receive a secure intake form with instructions for uploading documents. We do not accept sensitive financial documents via email. All uploaded documents are handled with strict confidentiality and used solely for the specific engagement for which they were provided.
All turnaround times begin once all required documentation has been received — not from the date of order.
Rush delivery is available as an add-on for time-sensitive deals. Contact us to discuss availability.
Possibly. The CIM Snapshot (1–2 business days) and QoE Lite (5–7 business days) are designed for fast turnarounds. Rush delivery add-ons are also available depending on current capacity. Send us the deal details or email info@qoepro.com. We'll be direct about whether we can meet your timeline. If a call would help, we can schedule one.
All reports are delivered as a polished PDF document. QoE Lite, Standard QoE, and Comprehensive QoE reports also include an accompanying Excel workbook with the underlying EBITDA bridge, addback schedule, and supporting analysis — so you can review the model directly and share it with lenders or investors. The Lender-Ready Formatting add-on further enhances the PDF exhibit structure specifically for SBA and conventional lender review.
Yes. We publish a complete Standard QoE prepared on a fictional HVAC company, with every section intact: EBITDA bridge, addback assessment, cash proof, working capital peg, and the full risk findings. Download the sample report →
Buy-Side CIM Snapshot is $500. Buy-Side QoE Lite and Sell-Side QoE Lite are $3,000. Standard and Comprehensive QoE engagements require a deal intake, with the final fee fixed upfront after scope is confirmed. Add-ons are priced separately. See the Buy-Side and Sell-Side pages for current details and next steps.
Payment is due at online checkout for Buy-Side CIM Snapshot, Buy-Side QoE Lite, and Sell-Side QoE Lite, processed through QuickBooks/Intuit. Standard and Comprehensive engagements begin with a deal intake; after scope is confirmed, an invoice is issued before work begins. Refund eligibility is governed by the posted Refund Policy and whether work has commenced.
Fees are non-refundable once work has commenced, regardless of whether the deal closes. The analysis itself has value independent of any specific transaction — the findings from a QoE can inform your next deal, help you re-approach the seller on adjusted terms, or serve as documentation for investors. We understand deals fall through; it's part of the process.
Lender requirements vary, and no independent provider can guarantee that every lender will accept every scope. QoEPro reports are designed around the types of earnings, reconciliation, and working-capital analysis commonly relevant to acquisition underwriting. If a lender has specifically requested a QoE, confirm its required scope first; for lender-driven deals, Standard QoE is generally the better starting point than a lighter screen.
For SBA financing on a typical lower middle market deal, the Standard QoE is generally the better starting point. It includes monthly-level analysis, working capital, reconciliations, addback documentation, and debt-like items commonly relevant to acquisition underwriting. If you're not sure what your lender specifically requires, share the request in the deal intake and we'll confirm the right fit, with a call if needed.
Yes — we have a broker referral program for M&A brokers and sell-side advisors who want to offer clients a credible, independent QoE as part of a well-prepared listing package. A QoE in your listing compresses buyer due diligence timelines, reduces the probability of a retrade, and gives your deal a material advantage in competitive processes.
Yes. Brokers who refer multiple engagements per year receive preferred pricing across our report tiers. Contact us to discuss your current deal pipeline and we'll put together a simple partner arrangement. Get in touch →
Send us the basic deal details and we’ll point you to the appropriate scope, pricing, and next step. If you already have an active deal and want to talk through it, you can schedule a call directly.