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Assessment of Quality of Earnings 
Not all returns are the same.

Optimally prepared for the purchase negotiations

The future of a company depends on its financial health.

When the purchase price is in the 6- or 7-digit range, it's worth looking beneath the surface.

We leave no stone unturned

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➕ Analysis of historical financial data

➕ Authenticity of the income

➕ Recurring and non-recurring income

➕ Significant discrepancies in accounts

➕ Stability and predictability of returns

➕ Profitability and margins (profit margins, EBITDA)

➕ Development of EBITDA

➕ Diversification of income sources

➕ Comparisons with industry standards and competitors

➕ Cash flow generation

➕ Customer and contract basis

➕ Seat occupancy, frequency (e.g. schools, daycare centers)

➕ Quality of business activities

➕ Future prospects

➕ Risks and uncertainties

➕ Striking patterns in revenue

➕ Debt ratio, gross profit margin, etc.

➕ Growth potential of the company

➕ Investment backlog (maintaining competitive position)

➕ Working capital requirements

➕ Tax implications

➕ Changes that will affect cash flow

Invest in companies with a future! Our experts' earnings quality assessment (QoE) provides you with the crucial information you need to make an informed purchase decision.

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With SolutionSync at your side:

  • Ensure an appropriate return potential for your invested capital.

  • Uncover potential discrepancies between revenue and income.

  • Assess the stability, sustainability and future prospects of the target company.

  • Minimize investment risks.

 

Since Entreprise Value is usually determined based on a multiple of EBITDA, the QoE is an important decision-making aid for both buyers and lenders, as it can reveal whether the requested purchase price is justified, undervalued, or overvalued.

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With the BEQ report you are optimally prepared for contract negotiations

The result of the BEQ is a final report, which, depending on the size of the company and the industry, is between 20 and 30 pages long. Unlike a full financial due diligence, the earnings quality assessment is limited in scope and is typically conducted during the due diligence phase. The report focuses on earnings power, profitability, and serious risk areas.

"Facts are stubborn things"
-- Ronald Reagan

We offer individual, personal, confidential advice to every interested party—and free of charge. Schedule an appointment with us—completely without obligation.
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