In this episode, Caleb Basile, CPA and owner of QOE Prep, breaks down the world of quality of earnings (QOE) analysis and why it’s one of the most critical, and misunderstood, steps in buying or selling a business. Having completed over 600 QOE engagements, Caleb explains how buyers can uncover the “repeatability” of a company’s profits, why working capital disputes derail so many deals, and how sellers often misunderstand what they’re really entitled to at closing.
From accounts receivable and deferred revenue to the EBITDA multiple and the SBA financing process, Caleb shares real deal stories, including one that saved a buyer $75,000, to illustrate why skipping a quality of earnings analysis is one of the costliest mistakes a buyer can make. Whether you’re an entrepreneur through acquisition, a serial acquirer, or a business owner preparing to sell, this conversation offers practical guidance on protecting your deal from financial surprises.
Learn more about QOE Prep at https://qoeprep.com/
Note: For education/entertainment purposes and not to be taken as advice