Elevate Your Quality of Earnings (Buy-Side/Sell-Side)
At Opportune, we understand that Quality of Earnings (QoE) analysis is critical for making informed investment decisions and ensuring financial transparency. Whether for the buyer or seller, we specialize in providing comprehensive QoE assessments to help you gain a clear and accurate picture of a company's financial health and net income. We collaborate with clients to deliver:
- In-Depth Financial Analysis: Proven experience in analyzing financial statements to identify the true earnings capacity of a business.
- Revenue and Expense Verification: Detailed verification of revenue and expense items to ensure accuracy and consistency.
- Cash Flow Analysis: Assessing the quality and sustainability of cash flows to support investment decisions.
- Identifying Non-Recurring Items: Differentiating between recurring and non-recurring income and expenses to provide a realistic view of ongoing performance.
Comprehensive Financial Assessments
Our Quality of Earnings services go beyond basic financial review to provide a thorough understanding of the business's financial condition. Opportune offers clients:
- Revenue Recognition Review: Ensuring that revenue is recognized in compliance with relevant accounting standards.
- Expense Analysis: Scrutinizing expense items to identify any unusual or non-recurring costs.
- Working Capital Assessment: Evaluating working capital components to determine the liquidity and operational efficiency of the business.
- Profitability Analysis: Analyzing profit margins and their sustainability to gauge the true profitability of the business.
Customized Reporting
We tailor our Quality of Earnings reports to meet the specific needs of our clients, providing clear and actionable insights. Our reports include:
- Executive Summary: Highlighting key findings and their implications for the business.
- Detailed Financial Schedules: Providing comprehensive breakdowns of financial data.
- Adjustments to Earnings: Identifying necessary adjustments to present a true economic view of the company’s earnings.
- Risk Assessment: Highlighting potential risks and areas of concern that may impact future earnings.
Mergers & Acquisitions Support
Quality of Earnings assessments are essential for successful M&A transactions. Opportune supports clients through every stage of the deal process with:
- Pre-Transaction Analysis: Conducting thorough due diligence to identify potential issues before a transaction.
- Post-Transaction Integration: Assisting with the integration of financial operations post-acquisition to ensure a smooth transition.
- Valuation Support: Providing insights that support accurate business valuations and purchase price allocations.
- Negotiation Assistance: Offering expert advice to support negotiations and secure favorable terms.
Due Diligence Support
At Opportune, we understand that thorough due diligence is crucial for making informed investment decisions and ensuring the success of mergers and acquisitions. Our Quality of Earnings services are an integral part of the due diligence process, providing comprehensive insights into a company’s financial health and operational efficiency. We support clients through every stage of due diligence with:
- Financial Analysis: Conducting in-depth reviews of financial statements to verify the accuracy of reported net income and earnings quality.
- Cash Flow Examination: Assessing the quality and sustainability of cash flows to ensure robust financial performance.
- Revenue and Expense Verification: Detailed verification of revenue streams and expense items to identify any irregularities or non-recurring costs.
- Working Capital Assessment: Evaluating working capital components to determine the liquidity and operational efficiency of the business.
- EBITDA Analysis: Reviewing EBITDA to understand the company’s operational performance and profitability before interest, taxes, depreciation, and amortization.