I Love a Good Quality of Earnings
A sell-side quality of earnings makes sense for more owners now than ever before.
I love a good Quality of Earnings
We're increasingly recommending to owners who are on the fence about selling to take a few months to clean up financials while they're mulling it over.
Even without glaring red flags, there's a benefit to this when we go to market and can move faster, with more buyer trust.
I like to address it one step at a time:
- QOE-lite focused on rev recognition, accruals, inventory, and add-backs for 12-24 months
- #1 often leads to clean up of prior years
- #2 often leads to expanding their existing bookkeeper's scope or hiring a new firm to handle the day to day bookkeeping
Even without a transaction, the business is in a better place than it started.
Most don't pull the trigger immediately so if you've got the time, clean it up!
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