Uncover the true financial story behind the numbers
Financial statements tell only part of the story. Compressed deal timelines mean buyers and sellers need deeper insights into earnings sustainability, cash flow predictability, and the real drivers of business performance. At BPM, we deliver comprehensive Quality of Earnings reports that cut through accounting complexity to reveal the financial reality of your transaction.
Our approach to Quality of Earnings
We take a forensic, business-focused approach that goes beyond traditional financial analysis. Our QoE studies help you understand not just what the numbers say, but what they mean for future performance and deal value.
Earnings sustainability analysis: Our experienced team conducts thorough reviews of revenue recognition, expense patterns, and one-time items to determine which earnings are likely to continue post-transaction. We identify and quantify adjustments that impact normalized earnings and cash flow.
Working capital deep dive: We analyze working capital trends, seasonal patterns, and management practices to provide accurate assessments of cash requirements and potential post-closing adjustments that affect deal economics.
Cash flow reality check: Moving beyond reported earnings, we examine the relationship between income and cash generation, identifying discrepancies that could signal operational issues or accounting irregularities.