The Importance of Conducting a Quality of Earnings in M&A

Andrew Jordan is a Principal at Riveron Consulting where he provides transaction advisory services. He’s had his hand in mergers and acquisitions for the last 8 years and has incredible insight regarding quality of earnings (Q of E) and M&A deals.

Show Notes:

0:00 – 0:47 Summary of Andrew’s background

0:48 – 5:44 Advantages to sellers doing Quality of Earnings (Q of E) analysis

5:45 – 6:51 When to get buyers involved in process

6:52 – 9:51 Biggest challenge from financial accounting due diligence process

9:52 – 10:39 Particular strategies to overcome data challenges

10:40 – 19:19 Interesting and extreme expense item discoveries

19:20 – 25:38 Evaluating Q of E adjustments

25:39 – 26:30 How see diligence process evolving

26:31 – 27:27 Assuring proper controls, both in and outside of Q of E analysis

27:28 – 32:03 Key lessons learned

 

M&A Science by Kison Patel (kison@dealroom.net)

DealRoom: Data Science and AI for M&A (www.dealroom.net)