
7 Critical Issues Related to Quality of Earnings
M&A Talk: #1 Podcast on Selling a Business
00:00
Navigating Financial Adjustments and Valuations
This chapter explores the complexities of pro forma adjustments in financial reporting, emphasizing the need for historical credibility when normalizing financial statements affected by unusual expenses like pandemic disruptions. It further covers the importance of Quality of Earnings analyses in Discounted Cash Flow valuations, illustrating how emotional factors can influence M&A transactions. The chapter also examines recent changes in lease accounting and their implications for middle-market companies, highlighting the significance of accurate financial records amid regulatory scrutiny.
Transcript
Play full episode