In today’s fast-paced M&A environment, speed and precision are paramount. AAFCPAs’ Quality of Earnings Lite (QoE Lite) solution is a streamlined, cost-effective alternative to a full QoE report. Designed for small businesses or initial high-level reviews, QoE Lite is frequently performed in the early stages of a transaction — often before a letter of intent — when stakeholders need timely insight to inform valuation, structure, or next steps. It can also be used to supplement information in reports provided by an investment banker or broker.
Whether you’re an investment banker, broker, private equity firm, or business owner preparing for a purchase or sale, our QoE Lite analysis delivers targeted financial insights that help you make informed decisions quickly and confidently.
How QoE Lite Strengthens a Seller’s Position
Our clean QoE Lite reports reinforce the seller’s position by providing analysis of financial statements and explanations of findings. By identifying and explaining add-backs or non-recurring items upfront, these reports provide valuable insight and help reduce buyer pushback. They may also contribute to faster deal closure by increasing buyer confidence and streamlining diligence timelines. Additionally, by proactively addressing potential red flags, QofE Lite helps mitigate risk and minimize surprises or renegotiations during your transaction process.
Understanding Your Quality of Earnings Lite (QoE Lite) Report
QoE Lite is a cost-effective yet informative financial analysis tailored for transactions where the target company may not have GAAP financial statements. It focuses on the critical aspects of financial health found in a traditional Quality of Earnings report, making it ideal for internal use when a comprehensive review is not needed. This solution is particularly well-suited for lower middle-market transactions, early-stage or emerging businesses, time-sensitive deals, and engagements with budget constraints.
What’s Included in a QoE Lite Review
Our team distills the essentials, such as revenue recording key financial adjustments, to provide a high-level understanding of the financial statement components.
Earnings Normalization and Adjustments
Identification of selected adjustments related to owner compensation and unusual or non-recurring items for analytical reference only.
Selective Balance Sheet and Financial Analysis
Targeted analytical procedures applied to specific balance sheet accounts and transaction-relevant metrics.
Working Capital, Sales, and Seasonality Trend Analysis
Analysis of working capital components, sales activity, customer concentration, and seasonality patterns.
Significant Accounting Policies and Procedures
Review of key accounting policies and procedures to assess consistency and application across periods, without evaluating policy adequacy or outcomes.
Tailored Analytical Deliverables
Customized analytical schedules based on transaction scope and buyer-requested focus areas.
Buyer-Ready Reporting
Clear, concise summary of analytical findings, identified adjustments, and explanatory context designed to support transaction diligence and discussions.
Why M&A Advisors Rely on AAFCPAs for QoE Lite Services
As a U.S. Top 100 CPA and consulting firm, AAFCPAs is a trusted partner to M&A advisors who are committed to protecting and advancing their clients’ best interests. Our team brings deep industry insight across sectors, delivering financial analyses that are both relevant and actionable. We specialize in producing high-impact results efficiently, helping sellers present their financials in buyer-friendly formats, surface key questions early, and support smoother, more strategic negotiations. Throughout the transaction process, our seasoned business transaction advisory team remains readily available to interpret findings and answer questions in clear, accessible language, ensuring advisors and their clients feel confident and well-informed every step of the way.
Connect with Our Transaction Advisory Leaders
Janice O’Reilly
Emily Feeley
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