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Mentioned in 1 episodes
Quality of Earnings
Uncovering Hidden Red Flags and Ensuring Accuracy in M&A
Book • 2024
The concept of Quality of Earnings involves a detailed analysis of a company's financial records to determine the accuracy, sustainability, and quality of its earnings.
This includes verifying stated EBITDA, examining projected financial performance, and assessing the sustainability of revenue and earnings.
It also involves identifying and adjusting for accounting gimmicks, one-time events, and other factors that could misrepresent a company's true financial health.
This analysis is crucial in M&A transactions to ensure that buyers and sellers have a clear understanding of the target company's financial situation and to mitigate potential disputes and financial risks.
This includes verifying stated EBITDA, examining projected financial performance, and assessing the sustainability of revenue and earnings.
It also involves identifying and adjusting for accounting gimmicks, one-time events, and other factors that could misrepresent a company's true financial health.
This analysis is crucial in M&A transactions to ensure that buyers and sellers have a clear understanding of the target company's financial situation and to mitigate potential disputes and financial risks.
Mentioned by
Mentioned in 1 episodes
Mentioned by Clay Fink as a resource for those interested in M&A due diligence.
76 snips
TIP672: Quality of Earnings: Uncovering Hidden Red Flags w/ Clay Finck
Mentioned by 
Patrick McMillan
How to Build Superior Financial Models for M&A With Patrick McMillan
