Quality of Earnings - a Must or Nice-to-Have for Peace of Mind

by a searcher from Yale University - School of Management

11 months ago

How to best  think about the need for a QoE? Is the size of the transaction the deciding factor or the complexity of a business's financials?  If the lender does not require it, when would you want to get it done, especially for a smaller transaction (i.e., <$1.5M)? It would be great to hear from those who did it and discovered something that truly made it worthwhile.

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searcher from Virginia Polytechnic Institute and State University (Virginia Tech)

A lot of businesses are simple enough that I wouldn’t take on the expense of a QofE. I have two under contract right now that we’ll analyze ourselves because we understand the industry sufficiently well, so definitely not a necessity for everything. That being said, some businesses I wouldn’t skip it. .

11 months ago | like reply | 0 likes

searcher from University of Texas at Austin

Following

11 months ago | like reply | 0 likes

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