Is a QOE always necessary?

by a searcher from University of Cambridge

10 months ago

I've got an active LOI on a small hydraulic repair/service company at 1.7M and am about to go into due diligence. The financials seem to be relatively straightforward, the tax returns match the P&L statements, etc. Is it best practice to do a full QOE on a company of this size/nature, or is there another path that provides the insight needed into a target's financials?

I appreciate any guidance/thoughts on this!

5 likes
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66 comments

searcher from Portland State University

I had some questions surrounding QofE myself and got amazing responses from the community. Feel free to check out my post: https://www.searchfunder.com/post/guidance-on-qofe

1 month ago | like reply | 0 likes

searcher from Butler University

I have hired a cpa to do a "proof of cash" for deals like these. Idea is to make sure the cashflow you expect has been hitting the target company's bank account. This will be only a day or two of work and should provide comfort in the numbers.

2 months ago | like reply | 0 likes

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