A third-party forensic analysis of a target company's reported earnings, typically commissioned by the buyer during due diligence. The report verifies the accuracy of seller-stated add-backs, reconciles bank deposits against reported revenue (proof of cash), tests the sustainability and recurrence of earnings, and flags accounting irregularities or inconsistencies. Prepared by a CPA firm or forensic accounting specialist, the QoE report forms the evidentiary basis for adjusting the purchase price or renegotiating deal terms. (Also see: add-back, adjusted-ebitda, proof-of-cash.)
Due Diligence
Quality of Earnings (QoE) Report
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