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Sell-side Quality of Earnings Report [Video]

Sell-side Quality of Earnings Report

As part of the financial due diligence in buying a company, buyers will sometimes hire a third party to perform a quality of earnings analysis.

More recently, it’s becoming common for the seller to hire someone to issue a quality of earnings report as well.

If you’re buying or investing, it’s called a “buy-side quality of earnings report.”

If you’re selling the business, it’s a “sell-side quality of earnings report.”

So why would a seller want a quality of earnings report?

There are several reasons:
1. To increase the purchase price
2. To increase the chance of the deal closing
3. To reduce the risk of litigation

Let’s start with the purchase price.

If the seller gets a QoE report that shows the company has clean accounting and no issues, this will reduce uncertainty among potential buyers. Less uncertainty means more bidders, and more bidders means a higher purchase price.

Also: the main purpose of a QoE report is to adjust EBITDA. But do you think the buy-side QoE team is going to be arguing for lots of adjustments to increase EBITDA? No, that would cause the buyer to have to pay more. A sell-side QoE team can thus argue for upward adjustments to EBITDA where they are appropriate.

Next, let’s talk about the deal closing.

A sell-side QoE can uncover any accounting problems so they can be ironed out before the company starts shopping itself to buyers. The last thing you want is for a deal to fall apart during the due diligence phase because the buyer discovers the EBITDA has been significantly overstated.

A sell-side QoE report will also reduce the time it takes for the deal to close, because the seller will already have all the contracts and other documents in place when it comes time for the buy-side QoE. The selling company’s management will also be prepared for the QoE, having already gone through the process once. The buy-side QoE will thus go more quickly and the deal can close faster.

Finally, let’s discuss litigation. A sell-side QoE team can help with negotiations and drafting the purchase agreement. Lawsuits can occur after a deal if there’s a disagreement about how much working capital the company would need. The sell-side QoE team can help the seller’s legal team foresee such issues and draft a clear, ironclad purchase agreement.

Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.
Edspira’s mission is to make a high-quality business education accessible to all people.

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Resources for Accountants

Cheap Modified Car Insurance ★ 2022 [Video]

Discover cheap modified car insurance. Here’s the free service we use to get cheaper car insurance (toll free): 1-855-981-7528. It’s a free by phone service that specializes in locating the cheapest car insurance rates. They perform the tedious task of shopping around, and present you with the cheapest auto insurance provider for your location. We call this service every year before our auto insurance expires. It allows us to discover whether there is a cheaper rate than ours, and has saved us lots of money over the years. Here are some of the topics covered in this video: How to get cheaper auto insurance rates online, get discounts and lower your policy cost, ways to lower vehicle insurance premium cost, which are the best car insurance companies and why Geico, National, Progressive, Allstate, Root, State farm, General, or farmers are not always the best bet. Why Dave Ramsey is not always right. Ways to get affordable drivers insurance quotes, how to locate the best cheap automobile insurer for a specific location. For more ways to save on your car insurance rates, see here: https://www.bizmove.com/auto-car-insurance/

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Investing vs Trading - Which is Better? (Top Differences) [Video]

In this video tutorial, we will talk about the top key differences between investing and trading.What is Trading?Trading is aimed at earning quick profits by holding on to stocks for a short period of time (such as weekly, monthly, daily).What is Investing? Investing involves a gradual building of wealth and assets by buying and holding on to a portfolio of stocks for a time period that may sometimes reach even 10 to 15 yrs.Some other key factors that differentiate between investing and trading are:- Method/approach involved.- Time factor.- Risk factor.#investingvstrading #wallstreetmojo #tradingvsinvestingFollow us at : Youtube ➤ https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedin ➤ https://www.linkedin.com/company/wallstreetmojo/Facebook➤ https://www.facebook.com/wallstreetmojoInstagram➤https://www.instagram.com/wallstreetmojoofficial/

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Accounting Made Simple: For Small & Businesses - 4 Books in 1 Audiobook [Video]

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IFRS VS GAAP | Part-8 (3) Accounting Series [Video]

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