Quality of Earnings
Whether you are looking to sell, are seeking additional financing or want to acquire a business, a critical success factor will be the quality of the earnings stream that is being generated.
SB Partners’ Quality of Earnings Report provides a deep dive into the financial statements and includes other factors to determine the overall health of a business.
By contextualizing the financial reports, the numbers will lead to more than just a bottom line allowing both you and your corporate finance partner to determine whether the earning streams generated can be justified in the valuation.
The earnings quality of a business is driven by several factors including:
• Reality vs. Presentation
• Internally Developed Initiatives vs. External Forces
An investment in assessing the quality of earnings will assist you with due diligence and provide a true analysis of the health of a business.