A quality of earnings report is often discussed as part of the process of buying or selling a business, but not everyone may fully understand what it is. Quality of earnings is a form of due diligence that provides an analysis of a company’s financial information. It can be associated with either a sell-side or a buy-side transaction. It generally includes financial tax due diligence, although a business may also want or need to have legal, cyber and other types of diligence performed.
What does a quality of earnings report include and what are the advantages of completing one in advance of a transaction? Richard Snyder, Director, Audit & Accounting, answered those questions and more in this article for Philadelphia Business Journal.