Quality of Earnings
Know the earnings before you buy them.
Buy-side QoE reports for independent sponsors, search funds, private equity, and serial acquirers. Agents test the target's full ledger, a licensed CPA reviews every conclusion, and the report lands on a committed date inside your exclusivity window. Fixed fee, set at scoping.
The window
Exclusivity is short. Traditional diligence is not.
A conventional QoE runs on interviews, sampled tie-outs, and a provider's staffing calendar. The clock that matters is yours: an exclusivity window, a financing contingency, a seller with other offers.
Avow commits the delivery date at scoping. Fieldwork starts the same week access is granted, and findings surface as they are found, not in a final readout. Status updates follow one structure: what we tested, what we found, and what remains open.
Full-population diligence
The whole ledger. Not a databook slice.
A databook summarizes what the seller chose to show. Our agents read the underlying records and test every transaction in the period.
Proof of cash
Every receipt and disbursement reconciled to the bank across the full period, not a three-month sample.
Revenue quality
Recognition, concentration, and churn tested customer by customer, invoice by invoice, across the period.
Adjusted EBITDA
Every addback and adjustment traced to source documents, so the number you negotiate on holds up.
Working capital, seasonality, and one-time items are set out with citations to the underlying records, so your lender and your reps-and-warranties underwriter can check the work.
What you get
Fixed fee. Committed date. Numbers that hold up.
- A fixed fee, set at one scoping call. No hourly diligence bills.
- A committed delivery date that fits your exclusivity window.
- Every figure in the report cites the record behind it.
- Findings surfaced as they are found: what we tested, what we found, and what remains open.
- Every conclusion reviewed by a licensed CPA before the report is delivered.
Scope, plainly
Independent diligence. Not an audit.
A Quality of Earnings report is an independent analysis of a target's earnings, prepared for you as the buyer. It is not an audit, and no audit opinion is issued.
If you need audited financial statements, Avow's audit practice is separate by design, and QoE work never quietly turns into audit work. See audit and attestation services
Who it's for
Built for buyers who close more than once.
Independent sponsors
You pay the diligence bill yourself, and the deal moves at the speed of your answer. A fixed fee, and a report your capital partners can rely on.
Search funds and SBA buyers
Lender-grade diligence, scoped to lower-middle-market deals, at a price a single acquisition can carry.
Serial acquirers and rollups
Every close needs a QoE. Same scope, same format, same date discipline, at every close.
Book a scoping call this week. One call sets the scope, the fee, and the date.
Selling a company?
Sell-side QoE, same method.
Sellers commission a QoE on their own company before going to market, to surface problems before buyers find them and to speed every buyer's diligence. Avow prepares sell-side reports on the same full-ledger method, with every figure citing the record behind it: diligence a buyer can verify instead of redo.