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Is it time for a Quality of Earnings Report?

Posted by : on : November 20, 2019 | 8:00 am

Quality of Earnings reports are primarily used in transaction execution, however they can also be completed for financing or planning purposes for company management.

 

How can I benefit from a due diligence engagement?

 

A quality of earnings analysis provides a comprehensive financial and operational profile for companies of all shapes and sizes. This can provide tremendous insight into the sustainable earnings and operational cash flows as well as the transaction process, whether you are considering buying a company or exploring the market for selling your own.

 

How is that different from a financial statement audit or review?

 

Due diligence is different than a typical attestation engagement. Due diligence focuses on analyzing key business and operational trends, quantifying risks and opportunities, and translating financial information into decision-enabling information.

 

I’m sold! Now what?

 

The process is similar for buy-side and sell-side diligence, however there are key differences that are discussed in the charts below.

 

 

 

In the end, our goal is to elevate the likelihood a transaction is completed while driving maximum value to our clients. Non-transaction related diligence can also help highlight strategic and operational opportunities that may be hiding under the surface.

 

If you have questions or want more information about quality of earnings engagements, contact FGMK.

 

Christopher C. Shemmer
Senior Manager
Transaction Advisory Services
312.818.4312
CShemmer@fgmk.com

 

The summary information in this document is being provided for education purposes only. Recipients may not rely  on this summary other than for the purpose intended, and the contents should not be construed as accounting, tax, investment, or legal advice. We encourage any recipients to contact the authors for any inquiries regarding the contents. FGMK (and its related entities and partners) shall not be responsible for any loss incurred by any person that relies on this publication.

 

About FGMK

 

FGMK is a leading professional services firm providing assurance, tax and advisory services to privately held businesses, global public companies, entrepreneurs, high-net-worth individuals and not-for-profit organizations. FGMK is among the largest accounting firms in Chicago and one of the top ranked accounting firms in the United States. For 50 years, FGMK has recommended strategies that give our clients a competitive edge. Our value proposition is to offer clients a hands-on operating model, with our most senior professionals actively involved in client service delivery.