A QoE is typically a request from a business owner that plans to sell their business and wants to present their business to potential buyers as strongly as possible.

For obvious reasons, a buyer making an investment to buy a privately held business is nervous about the quality of the financial statements. Equally, if a buyer needs to get third-party finance, the lender wants to know the quality of the financial statements is sound so they have confidence the buyer can repay their loan.

A QoE is NOT an audit. If you require an audit, seek the services of a licensed CPA.

QoE gives buyers, investors, lenders, and brokers something to rely on beyond self-reported financials.

What is critical to a QoE is that an analyst with the right credentials prepares the report and includes a careful analysis of historical revenues and expenses, sales, major customer concentrations, and expense add-backs.

A QoE includes but is not limited to:

A QoE is the product of an accredited analyst.

Your QoE is prepared by a Master Analyst in Financial Forensics (MAFF) and Certified Valuation Analysis (CVA.) This is to ensure the report is to the highest standards. These credentials are administered by NACVA or the National Association of Certified Valuators and Analysts.

The initial documents required are historical annual financial statements (Profit & Loss and Balance Sheet) for the full last 2 years with a yearly comparison in one Excel worksheet. Additionally, if it applies, interim financials by month, are also in one Excel worksheet.

It’s not unusual to have an initial request for documents and then, as the analyst starts working on their report, ask for supporting documents specific to how the financial statements are prepared for the business owner and management.

When you are ready to request a QoE, we will enter into a contract with you with an Engagement Agreement.

To see the Table of Contents of a sample QoE report, click here.

The investment in a QoE varies according to the size of the business or its Gross Revenue.

You are welcome to contact us for more information.

Paying for a QoE can be a negotiation between the seller and the buyer but it’s normal for the seller to cover most if not all the cost.

The reason for this is that the buyer has no knowledge of the quality of the financial statements and like most of the representations of the seller, accepts them to be true unless the buyer finds out otherwise.

To add to this point, if the seller expects the buyer to pay for the cost of the QoE, it can worry the buyer that the seller doesn’t believe in the quality of the financial documents.

The typical turnaround of a QoE is approximately 6 weeks, but it can be rushed for an additional fee.

The place to start if you want to have a QoE is to get answers to your questions.

If you would like to schedule a call, click this link.  This will allow us to understand the purpose of your QoE and answer your questions.

Once you are ready to request your QoE, we will provide you with an Engagement Agreement to review, complete, and return to us.

If you are ready to start, click this link to complete a short questionnaire and see if we are a good fit to work together.