Pre-sale due diligence can help increase the valuation of the enterprise and eliminate surprises for the seller in a business transaction. The preparation of a quality of earnings (QOE) report will assist in making an efficient and effective due diligence process.
The enterprise value of the business typically is based on:
Other factors specific to the individual business can contribute to the value of the business. Third-party QOE providers can get granular in analyzing the adjusted EBITDA during a QOE evaluation.