In this edition of IBBA insights, Cress V. Diglio and Evan Ottaviano of Bennett Thrasher CPAs discuss the importance of quality of earnings (QoE) reports in the sale of businesses. They discuss what a QoE is, why it is important, and how it impacts business buyers, sellers, lenders, and the M&A process. They also cover the various levels of QoE reports, approximate time to complete, related costs, factors that contribute to a good QoE report, the impact of current economic conditions and industry trends, as well as red flags to look out for in financial statements. Evan provides insights into the necessary documentation and confidentiality of QoE reports and how they are used by stakeholders. This podcast is a must-see for business owners considering the sale of their business to be prepared for the potential of a QoE report.

Host: Cress V. Diglio

Watch the video version of this episode