Quality of Earnings

Know the Real Numbers Before You Buy, Sell, or Close.

ACE CPAs tests EBITDA, cash flow, net working capital, and deal risk so you commit capital based on numbers that hold up. Every engagement is CPA-led and priced on a fixed fee.

TRUSTED BY 25+ industries served

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270+ Quality of Earnings Led
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ASAP Timeline Options available
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Clear Fixed-Fee Terms Sheet
Icon of a pastel-colored document showing a pie chart and bar graph with a magnifying glass focusing on a rising bar graph segment.
270+ Quality of Earnings Led
Colorful pastel icon depicting a calendar with a clock in front, the clock showing motion lines to indicate fast scheduling or quick time management.
ASAP Timeline Options available
Icon showing a document, a cloud with an upward arrow, and a shield with a lock representing secure cloud upload and data protection.
Secured Client Files Upload
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Clear Fixed-Fee Terms Sheet

See Where Deal Numbers Break Down

In under three minutes, our lead CPA walks through the red flags sellers hide, what they cost buyers after close, and how we find them first. Click a module to skip ahead.

Deal Risks

Reported Profit Can Mislead. Protect Your Capital.

Seller financials are built for taxes and bookkeeping, not for pricing a deal. Without an independent review, you can overpay for earnings that don't exist.

One-Time Income Looks Recurring

Windfall sales, insurance payouts, and pulled-forward revenue can make one good year look like the baseline.

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Add-Backs Need Support

Owner compensation and "non-recurring" expenses must be documented and reasonable, or lenders and buyers will reject them.

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Working Capital Can Disappear

Without a supported working capital target, you may need to inject cash right after closing to keep operations running.

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Hidden Liabilities Reduce Value

Unrecorded debt, deferred maintenance, and tax exposure often surface late if no one tests for them.

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Who We Help

Built for Every Side of the Deal

Pick your role to see how a QoE protects you.

Confirm EBITDA Before You Sign the LOI

Don't pay a multiple on numbers that won't hold up. We test the seller's add-backs, revenue quality, and cash, and set a working capital target that protects you at close.

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Find the Issues Before the Buyer Does

A sell-side QoE shows you what a buyer's team will find. You fix gaps early, defend your add-backs, and avoid price cuts late in the deal.

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Fast, Lender-Ready Diligence for Your Pipeline

Fixed-fee QoE work your investment committee and lenders can rely on, with clear adjustments and a supported working capital peg.

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Keep Your Deals From Stalling in Diligence

Bring us in early so financial questions get answered before they slow the deal. We work alongside you and keep your client informed.

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Underwrite on Verified Cash Flow

Our reports reconcile reported earnings to bank activity and document every adjustment, so your credit team can rely on the numbers.

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Scope Analysis

What We Analyze in Every QoE

Eight areas that decide whether the seller's numbers hold up.

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Adjusted EBITDA

We remove one-time and owner-specific items to show the earnings a buyer can count on.

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Revenue Quality

We test customer concentration, contract terms, and how much revenue repeats year to year.

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Cash Flow

We compare reported profit to actual cash coming in to find timing gaps and aggressive accruals.

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Working Capital

We analyze 12 to 24 months of balances to set a fair working capital target for closing.

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Proof of Cash

We reconcile the books to bank statements so revenue and expenses tie to real money.

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Debt and Liabilities

We look for unrecorded debt, deferred payroll, and tax exposure that reduce what the business is worth.

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Margin Trends

We track gross and operating margins by month to spot pressure before it hits the deal.

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Capital Spending

We separate the maintenance spending the business needs from growth spending the seller can skip.

Lite vs Full

Choose the Right Scope for Your Deal

Both are CPA-led and fixed fee. The difference is depth, deal size, and who needs to rely on the report.

Fast Answer

QoE Lite

Best for deals under $2M, asset purchases, or a quick check before the LOI.

What’s included:

EBITDA adjustment summary

Review of the seller's main add-backs

Customer concentration check

Key risk summary

Turnaround: 5 to 7 business days

Pricing: Fixed fee, quoted after a scoping call

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Lender Ready

Full Quality of Earnings

Best for deals over $2M, SBA and bank financing, and PE buyers.

What’s included:

Monthly EBITDA adjustments

Working capital analysis and target (peg)

Proof of cash reconciliation

Full written report for lenders and investors

Turnaround: 2 to 4 weeks

Pricing: Fixed fee, quoted after a scoping call

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Deal Readiness Check

How Ready Are the Target's Numbers?

Answer five quick questions about the business you're buying or selling.

Are the seller's add-backs documented with receipts or contracts?

Are the bank accounts reconciled every month?

Do the tax returns match the financial statements?

Does every customer bring in less than 20% of revenue?

Has an outside CPA reviewed the books in the last 12 months?

Readiness score

Not started

Answer the questions to see where the risk is.

5 of 5 answered

A quick guide, not a financial review. Results do not replace professional diligence.

FAQs

Questions Buyers Ask Us

Straight answers on scope, timing, cost, and documents.

What is a Quality of Earnings report?

A QoE is an independent analysis of a company's earnings. We adjust reported profit for one-time items and owner expenses, test revenue and cash, and show the EBITDA a buyer can rely on.

How is a QoE different from an audit?

An audit gives an opinion on whether the financial statements follow accounting standards. A QoE answers a different question: what are the sustainable earnings the deal should be priced on. Most small and mid-size deals use a QoE, not an audit.

What is the difference between QoE Lite and a Full QoE?

QoE Lite covers EBITDA adjustments, key add-backs, and customer concentration for smaller deals, usually in 5 to 7 business days. A Full QoE adds monthly analysis, a working capital target, proof of cash, and a full report for lenders, usually in 2 to 4 weeks.

How long does a QoE take?

QoE Lite takes 5 to 7 business days and a Full QoE takes 2 to 4 weeks. The clock starts once we have the documents, so a fast response from the seller keeps the timeline short.

How much does a QoE cost?

Every engagement is a fixed fee based on deal size, the quality of the seller's books, and the scope you need. You get the exact price in writing after the free scoping call.

What documents do you need to start?

Usually 2 to 3 years of financial statements and tax returns, monthly general ledgers, bank statements, payroll reports, and support for the seller's add-backs. We send a tailored request list after the scoping call.

Can you work with QuickBooks?

Yes. We work directly in QuickBooks Online and QuickBooks Desktop files, which speeds up data collection.

Do you work with sellers, or only buyers?

Both. A sell-side QoE helps owners find and fix issues before buyers do, which protects the price during negotiation.

Will my lender accept your report?

Our Full QoE is written for lenders and investors. Requirements vary by bank and SBA program, so tell us your lender on the scoping call and we'll confirm what they need.

How do you protect our data?

Files are shared through an encrypted portal with access limited to the engagement team. We sign an NDA on request before any documents are shared.

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