Preparing Quality of Earnings Analysis 2024

Overview

This course is designed to introduce the Quality of Earnings report and analysis concept. You’ll understand the parties interested in this kind of report, what it is used for, how and when it is prepared, and some of the basic concepts that underlie a Quality of Earnings report. We’ll discuss the format and contents of the report, including “as reported” EBITDA, adjusted EBITDA, seller add-backs, out of period adjustments and non-recurring income and expense items. The class will include a comprehensive example illustrating these concepts.

Highlights

• Uses of a Quality of Earnings Report • Information needed to prepare the report • Overlapping enterprise valuation concepts • Various adjustments to “as reported” EBITDA

Prerequisites

None

Designed For

CPAs, corporate accountants and M&A professionals

Objectives

• Recognize nuances including techniques for obtaining reliable information and measuring synergies. • Determine how to confidently read a Quality of Earnings Report. • Identify how to advise clients about basic concepts.

Preparation

None