Quality of Earnings (QoE Reports)
A Quality of Earnings Report gives child care buyers more insight into a child care business’s financial performance and more to rely on than what is represented by in-house financial reports, the owner, or a representative of the business owner. These reports are essential for anyone looking to acquire a child care business—large or small. Our NACVA–certified analyst reviews the past financial performance of the child care business to judge not only the quality of earnings but also the likelihood of future earnings.
A quality of earnings report is a vital document that provides investors and stakeholders with insights into a company’s financial performance and the sustainability of its earnings. This report goes beyond the surface-level numbers and delves into the underlying factors that drive a company’s profitability.
When preparing a quality of earnings report, analysts evaluate various aspects of a company’s financial statements, such as revenue recognition, expense management, cash flow generation, and accounting practices. By conducting a thorough analysis, they can identify any irregularities or one-time events that may impact the accuracy of the reported earnings. Child care business buyers can rely on the quality of earnings reports to make informed decisions about investing in a company.
Quality of Earnings Range: $3,000 – $15,000
