Quality of Earnings

A Clear View of
What the Business Actually Earns

Buy-Side and Sell-Side Reports

We prepare QofE reports for acquirers validating a target and for sellers preparing their financial story before going to market.

Normalized EBITDA Analysis

We identify and quantify non-recurring items, management add-backs, and accounting adjustments that affect what the business sustainably earns.

Built for Deal Timelines

Big 4-trained professionals who understand that transactions do not wait -- and deliver findings that hold up under investor and lender scrutiny.

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100+

Successful transactions completed

20+

Years of experience

$5 - 50m

Average size of transaction

$20-200m

Average market cap of clients across tech, manufacturing & services

Quality of Earnings Analysis for M&A and Investment Transactions

What makes us different?

Reported financial statements reflect historical results under accounting rules. They do not always reflect the true earning power of a business. Non-recurring items, management adjustments, accounting policy choices, and timing differences can all cause reported earnings to diverge from what a buyer or investor would actually expect to receive going forward. A quality of earnings analysis bridges that gap.

Corviniti prepares quality of earnings reports for buy-side acquirers, sell-side principals, and private equity sponsors who need an independent, rigorous view of financial performance before a transaction closes. We analyze the historical financials, identify and quantify adjustments to EBITDA, assess working capital trends, and deliver conclusions that deal teams can use with confidence.

Our team brings direct transaction experience from prior Big 4 advisory work, and we approach every engagement with the same standard of rigor we would apply to a public company audit. We are direct about what we find, and we document our conclusions in a format that holds up under buyer and investor scrutiny.

We help with:
  • Normalized EBITDA Analysis: Identify and quantify non-recurring, non-cash, and unusual items that should be added back or removed from reported EBITDA for deal purposes.
  • Revenue Quality Assessment: Evaluate the sustainability, concentration, and predictability of revenue, including contract terms, renewal rates, and customer retention.
  • Expense Analysis: Review the cost structure for one-time charges, owner-related expenses, and items that would not recur under new ownership.
  • Working Capital Analysis: Assess historical working capital levels, identify seasonal patterns, and evaluate the appropriateness of any proposed working capital targets in the purchase agreement.
  • Accounting Policy Review: Identify accounting policy differences relative to industry norms or buyer practices that could affect comparability or post-close reporting.
  • Non-Recurring and One-Time Items: Document and quantify items that management has identified as add-backs, and independently assess whether each adjustment is supportable.
  • Cash Flow Conversion: Assess the relationship between reported earnings and actual cash generation, including capital expenditure requirements and working capital movements.
  • Management Add-Back Review: Critically evaluate management’s proposed adjustments to assess whether each is legitimate, supportable, and likely to be accepted by a sophisticated buyer.
  • Seller Preparation Support: Help sell-side management prepare their financial presentation, anticipate buyer diligence questions, and organize supporting documentation.
  • Report Preparation: Deliver a clear, well-structured quality of earnings report in a format appropriate for deal teams, lenders, and investors.

Why Choose Us?

Big 4 expertise,
boutique agility

Corviniti brings the transaction rigor of a Big 4 advisory practice to quality of earnings engagements, with the direct senior involvement and responsiveness that deal timelines require. Our findings are clear, well-supported, and built to withstand scrutiny.

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Startups and US Capital Markets are our focus

From private equity acquisitions to founder-led exits and pre-IPO M&A activity, Corviniti provides quality of earnings analysis calibrated to the complexity of the transaction and the expectations of sophisticated buyers and investors.

  • Buy-Side and Sell-Side Engagements
  • Private Equity and Venture-Backed Transactions
  • Boutique Attention
  • Big Four Experience
  • Transaction Deadline Oriented

Contact Us To
Learn More

Call: (347) 472-1115
Email: info@corviniti.com

Tell us about your transaction and what you need. We will respond within 24 hours with a clear view of how we can help.

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Frequently Asked Questions

A quality of earnings report is an analysis of a company’s historical financial performance that adjusts reported earnings to reflect what the business sustainably earns. It identifies non-recurring items, accounting adjustments, and normalization entries that affect reported EBITDA. In M&A transactions, it is one of the primary tools buyers use to validate the seller’s financial representations and set a defensible purchase price.

Buy-side QofE work typically takes place during the due diligence phase, after a letter of intent has been signed and before the purchase agreement is finalized. Sell-side QofE work is often prepared earlier — before going to market — so that the seller has a clear, organized financial presentation ready when buyers begin their diligence.

An audit provides an independent opinion on whether financial statements comply with GAAP. A quality of earnings analysis is an advisory engagement focused on what the numbers mean for deal purposes — specifically, what level of earnings a buyer can expect going forward. The two are complementary but serve different purposes.

Our typical engagements involve companies with $5 million to $200 million in transaction value, consistent with our broader client base. We work on both straightforward situations and more complex transactions with multi-entity structures, international operations, or unusual revenue models.

A standard engagement typically takes two to four weeks, depending on the size and complexity of the business and the availability of financial data. We are experienced working on compressed deal timelines when the situation requires it.

The most common adjustments involve non-recurring revenue or expense items, owner compensation normalization, one-time professional fees, timing differences in revenue or expense recognition, and items that reflect management’s accounting judgments rather than economic reality. The specific adjustments vary by business and industry.

Yes. Sell-side QofE preparation is a service we regularly provide. Having a well-prepared financial presentation ready before buyer diligence begins shortens the process, reduces the risk of surprises, and generally supports a cleaner negotiation.

Yes. We regularly work with foreign private issuers and companies with cross-border structures, including IFRS reporting, US GAAP reconciliations, and multi-entity consolidations for companies with domestic and international subsidiaries.

In most cases, we can begin within a few days of finalizing our agreement. Our onboarding process is straightforward — a brief discovery session, a clear statement of work, and secure access setup. We do not have lengthy intake procedures that delay the start of actual work.