Closing Rates & QOE Trends

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August 26, 2025

by a searcher from University of Denver - Daniels College of Business in Boston, MA, USA

I just wanted to share what we're seeing after doing +30 financial due diligence projects this year at Appletree. 60% of our QOE clients are closing this year. Top reasons they don’t close: 1. Revenue and profit declining vs prior years 2. Seller's Discretionary Earnings was overstated 3. Working capital disagreements 4. Distrust during diligence Popular industries like HVAC, landscaping, and accounting deals are still happening. But just pay close attention to 2025 numbers and trailing 12 months.
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Reply by a professional
from Georgia Southern University in Atlanta, GA, USA
I can echo similar trends on our end!
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Reply by a searcher
from University of Wisconsin in San Diego, California, USA
Thanks for the insight Patrick. Regarding #3 - how do you see transactions typically handle working capital requirements? We are in DD on a business right now and we are to receive "normal amounts of working capital in the business" upon closing. But we haven't negotiated with the seller what that amount is. We are waiting on the QoE firm to provide us a working capital number, which we will then bring to the seller. Is that a typical process you see?
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