NorthBridge Business Advisors has years of experience with a Big 4 accounting firm, corporate environments and transactions. This background enables us to perform Quality of Earnings reviews for private equity in buy side engagements or for sellers and investment banker in sell side engagements. A Quality of Earnings report will give the parties greater confidence going into the engagement that the results are reliable.
A Quality of Earnings analysis includes:
- Breakdown of revenue by appropriate components, such as customers and product/service lines
- Analysis of historic revenue trends
- Determination of one-time expenses vs. recurring expenses
- Analysis of impact on both revenue and expenses due to management changes
- Analysis of assumptions used in cash flow projections and scenario analysis
- Effect on net working capital
- Other areas of emphasis as mutually agreed with the client.