Quality of Earnings CPA
Quality of Earnings (QOE) studies are used by a buyer of a business to evaluate whether the business will continue to operate as represented by the seller. Quality of Earnings reports can also be used by a seller to advocate for the stability of future cash flows.
Our Quality of Earnings Analysis is done by a Quality of Earnings Long Beach CPA and can be tailored to the needs of either buyers or sellers. They are designed to give an indication about the “certainty” of current income and project what will happen in the future.
It is important to note that a Quality of Earnings study is not an audit. Quality of Earnings Orange County studies revolves around the business metrics that are used to generate earnings and sustainability. We isolate these metrics and make determinations regarding the ability of the operation to continue to generate cash flows at their current or predicted level.
A Quality of Earnings Los Angeles study is used by both buyers and sellers of businesses to understand the metrics and the risks of the business in its current environment. The analysis is done by benchmarking the target business within the industry that it operates to give both buyer and seller an understanding of the inherent risks and potential rewards that the transaction will yield.