Inside our Due Diligence Report: What is a Quality of Earnings Report?

Описание: In this episode, I share an anonymized client report and real-world mini quality of earnings report example (our proprietary due diligence for buyers) to help a buyer understand what they’re buying.

I share why a buyer would use this quality of earnings, the documents we ask our clients to request, how we prepare the reports and share a live example from a former business buyer. This episode also shares what a seller would gain from this report pre-sale.

Jump to

00:00 – Intro
00:58 – Why due diligence? Who benefits from it?
03:11 – List of requested financial data and documentation for quality of earnings
06:39 – Our due diligence process and turnaround time
07:46 – Live review of CFO Due Diligence Report
12:23 – Quality of Earnings & Valuation
13:04 – Financial Health Assessment
13:55 – Customer Concentration Risk & Expense Overview
14:30 – Working Capital Requirements
14:57 - Report Summary & Recommended First 90 Days
15:45 – Wrap-up: Providing an M&A finance lens for buyers and sellers

What you’ll learn:
-What our Finance Fight Club Due Diligence reports tell you about what you’re buying

-How due diligence and quality of earnings differs from a business valuation

-A list of financial documents needed and commonly requested from sellers

-How risks get flagged and evaluated in a real report

-How both buyers and sellers can use these reports to create a smooth business transition, reduce deal risk, and support financing

Grab our Resources for a better business future:

12-month annual planning guide: https://financefightclub.com/2026plan...

Financial Statement Cheatsheet: https://financefightclub.com/financia...

Financial Accountability Checklist: ​​
https://finance-fight-club.kit.com/c2...


Natalie is the CEO & Founder of #FinanceFightClub
You can learn more about our offerings and book a discovery call at: www.financefightclub.com

Join the email list for weekly Finance Fight Club tips: https://financefightclub.com/newsletter

Disclaimers
This content is for educational purposes only and is not legal, tax, or financial advice. Always consult your own professional advisors before acting on strategies discussed in this episode. We are here to help demystify small business finance and help you gain confidence.