Financial Due Diligence (QofE)
Coordinate a Quality of Earnings analysis to validate true EBITDA, working capital, and cash flow.
What's Included
Sellers add back everything. Personal vehicles, family salaries, "one-time" expenses that happen every year. A Quality of Earnings (QofE) analysis strips out the fluff and shows you what the business actually earns.
We coordinate a CPA-led QofE covering: - Add-back review and rejection of non-recurring claims - Revenue quality: recurring vs one-time, customer concentration - Margin trend analysis (3-5 years) - Working-capital normalization and peg calculation - Cash-flow conversion and seasonality - Accounts receivable aging and bad-debt reserve - Inventory valuation and obsolescence - Deferred revenue and unearned income - Tax exposure and CRA risk areas
Result: a defensible EBITDA you can take to the bank and a working-capital peg that protects you at closing.
Key Benefits
Reject inflated seller add-backs
Bank-ready EBITDA for financing
Working capital peg defined and defensible
Customer concentration risk quantified
CRA / tax exposure surfaced before close
Available in These Packages
Related Diligence Services
More services in the same M&A lifecycle stage.
Financial Review
Review financial statements, sales trends, key risks, and growth potential before deep due diligence.
Business Valuation
Defensible valuation of the target using SDE, EBITDA multiple, and DCF — calibrated to Canadian comps.
Due Diligence
Coordinate accountants, lawyers, and specialists through 30-60 day deep diligence.
Legal Diligence
Coordinate Canadian M&A lawyers on contracts, leases, employees, IP, and corporate cleanup.