Finance Practice

Quality of Earnings (QoE)

Sell-side EBITDA defense and buy-side earnings quality scrubs that protect enterprise value during due diligence.

The Transaction Challenge

Institutional buyers, lenders, and investment committees heavily discount unsubstantiated management adjustments. On the sell-side, presenting aggressive EBITDA add-backs without granular general-ledger proof invites price retrades, extended exclusivity periods, and broken deals during confirmatory diligence. On the buy-side, relying on surface-level historical financials can mask revenue recognition distortions, margin erosion, or working capital deficits.

The DiedrichCo. Execution Methodology

We construct rigorous, transaction-grade Quality of Earnings analyses that tie every historical normalization and pro forma adjustment directly to underlying sub-ledger and contract evidence. On the sell-side, we prepare comprehensive QoE defense books and Net Working Capital (NWC) peg analyses prior to market entry—identifying and resolving accounting vulnerabilities before buyers see the data room. On the buy-side, we scrub target earnings sustainability, customer churn dynamics, and off-balance-sheet exposures to protect acquisition economics.

Technical & Regulatory Standards

Sell-Side QoE Defense & Rebuttal Architecture • Buy-Side Confirmatory Earnings Scrubs • Net Working Capital (NWC) Normalization & Peg Collar Mechanics • Proof-of-Cash & Margin Sustainability Verification.

Execution Scope

Key Deliverables & Advisory Focus

Senior Principal Accountability

Sell-Side QoE Preparation & Defense Books

Engineered to institutional, audit-ready, and board-defensible standards.

Buy-Side QoE Scrub & Pro Forma Adjustments

Engineered to institutional, audit-ready, and board-defensible standards.

Revenue & Margin Sustainability Proof

Engineered to institutional, audit-ready, and board-defensible standards.

Net Working Capital Target Peg Defense

Engineered to institutional, audit-ready, and board-defensible standards.

Mandate Continuity & Bundling

How Quality of Earnings (QoE) Integrates Across Your Transaction

While clients frequently retain DiedrichCo. specifically for Quality of Earnings (QoE), our advisory framework is designed to package seamlessly with adjacent disciplines as deals evolve—such as transitioning from PCAOB Audit Preparation into your ongoing Investor Relations firm of record, or bundling Corporate Structure and Valuations into a unified RTO or IPO strategy.