Choosing the Right Quality of Earnings Partner: Why Experience Matters in Transactions
In M&A transactions, a Quality of Earnings (QofE) analysis is more than just a financial review—it’s a critical tool that shapes deal confidence, valuation accuracy, and post-close success. But not all QofE providers are created equal. Choosing the right partner can mean the difference between a smooth transaction and costly or inefficient surprises down the road.
Beyond the Numbers: The Role of a Strong Quality of Earnings Partner
A Quality of Earnings analysis isn’t just about crunching numbers; it’s about providing insights that impact decision-making. A trusted partner will:
Uncover Hidden Risks – A surface-level Quality of Earnings report may not expose working capital pitfalls, aggressive revenue recognition practices, or discretionary adjustments that skew earnings.
Deliver Actionable Insights – Strong partners don’t just highlight problems; they offer strategic solutions to mitigate risks and support deal structure.
Ensure Deal Efficiency – Experienced providers anticipate deal complexities, streamline due diligence, and minimize back-and-forth questions that delay transactions.
Not All Quality of Earnings Providers Are Equal
Many firms offer Quality of Earnings reports, but only a select few deliver the level of depth, accuracy, and strategic foresight needed for high-stakes transactions. Here’s what separates a great QofE provider from the rest:
Industry Expertise – CSH has decades of experience across a wide variety of industries and is up to speed with the nuances associated with them. Leveraging a partner without this deep experience can result in missed issue identification and off-base earnings adjustments.
Tailored Analysis, Not Templates – Unlike CSH, some firms rely on generic QofE checklists that don’t reflect the unique financial and operational dynamics of the business under review.
A Collaborative Approach – CSH routinely partners with investment bankers, buyers and sellers to ensure a seamless process, rather than simply issuing a report with no further guidance. In addition to QofE, we have deep expertise in income- and non-income-based tax diligence, IT, HR and Operational diligence and deal structuring consultation.
Start Building a Better Deal
When it comes to Quality of Earnings analysis, who you work with matters. From inconsistent accounting practices, unexpected post-close liabilities, and eroded buyer confidence, there is no shortage of things that can go south. The right partner brings not only financial expertise but also deal fluency, industry-specific insight, and a commitment to delivering meaningful value. If you’re looking for a Quality of Earnings provider who goes beyond the numbers and helps drive transaction success, connect with CSH today.
