Quality of Earnings (QoE) Explained
Understand Quality of Earnings reports and their role in M&A transactions. Learn what QoE includes, typical costs, and how to interpret findings to make informed acquisition decisions.
## What a Quality of Earnings report actually is When a private equity fund or strategic acquirer puts a business under contract, their deal team's first call goes to a transaction services firm to commission a Quality of Earnings report. Yet most sellers, and many first-time buyers, have never seen one. Knowing what a QoE contains, who prepares it, what it costs, and how its findings ripple through valuation and structure is no longer optional for anyone buying or selling a business above €1M of enterprise value. This article walks through the mechanics from the ground up, with worked example…