Valuation & Quality of Earnings (QoE) Services
Valuations Both Sides TrustQoE That Survives DiligenceEBITDA You Can Actually DefendNumbers That Hold Up at the Table
Knowing what a business is worth, and being able to prove it, are different things. A quality of earnings report separates recurring, sustainable earnings from noise. A well-prepared valuation gives both sides of a deal a starting point they can work from. We do both.
Get StartedQuestions We Hear Often
If any of these sound familiar, we should talk.
What is my business actually worth? And will the number hold up when a buyer stress-tests it?
The buyer is asking for a QoE report. What is that and who prepares it for us?
My EBITDA includes a lot of one-time items. How do I present adjusted earnings credibly?
We're buying a business and need an independent view on the quality of their earnings.
What working capital peg should we negotiate in the deal? How do we calculate it?
We're planning an exit in 12 to 18 months. Do we need a formal valuation done now to prepare?
What We Deliver
Valuation and Earnings Quality Analysis for Every Deal Scenario
Business Valuation
Valuation analysis for M&A, fundraising, exit planning, and internal purposes. Multiple methodologies applied and reconciled to give you a defensible, documented valuation range.
- DCF and market comparable analysis
- Precedent transaction benchmarking
- Valuation bridge and sensitivity
- Written valuation summary
Quality of Earnings (QoE) Report
An independent analysis of a company's earnings to identify one-time items, non-recurring adjustments, and the sustainability of reported EBITDA. Standard in PE-backed M&A transactions.
- EBITDA normalization and adjustments
- Revenue quality and concentration analysis
- One-time and non-recurring item identification
- Earnings sustainability assessment
EBITDA Normalization
Detailed analysis of reported earnings versus normalized, recurring EBITDA. Used by sellers to support their asking price and by buyers to validate what they are actually acquiring.
- Identification of add-backs
- Run-rate revenue analysis
- Owner compensation adjustments
- Documented adjustment schedule
Working Capital Analysis
Working capital peg analysis for deal negotiations. What is normalized working capital? What should be included in the adjustment? We build the analysis both sides use to reach agreement.
- Historical working capital trends
- Normalized working capital calculation
- Peg recommendation and rationale
- Sensitivity to deal structure
We Understand What Buyers and Sellers Each Need
A QoE serves different purposes for a buyer versus a seller. We've prepared them from both sides of the table and know how to position earnings in a way that is credible and defensible.
Reconciled to the Books
Every adjustment we make ties back to the source financial statements. No unexplained add-backs. No numbers that don't reconcile. Buyers and their advisors will check.
Connected to the Deal Team
Valuation and QoE work from DNA Growth connects to the financial model, the CIM, and the transaction advisory team. One set of numbers, consistently applied throughout the deal.
Fast Enough for Deal Timelines
Deals move fast. We are used to working under deal pressure and deliver analysis that meets transaction timelines without cutting corners on accuracy.
Popular Packages
Pre-Scoped for Sell-Side, Buy-Side, and Deal Negotiations
Seller Valuation Package
Know your number before you go to market
What You Get
- Business valuation analysis
- EBITDA normalization
- Valuation range and summary
- Positioning for buyer conversations
Use Case
Business owners preparing for a sale
Sell-Side QoE Support
Prepare your earnings story ahead of buyer diligence
What You Get
- Quality of earnings report
- EBITDA bridge and add-backs
- Revenue quality analysis
- Working capital analysis
Use Case
Sellers preparing for PE or strategic buyer diligence
Buy-Side QoE Review
Independent verification of a target's earnings
What You Get
- QoE analysis of target financials
- Adjustment schedule review
- Earnings sustainability assessment
- Negotiation support
Use Case
Buyers and PE funds doing acquisition diligence
Working Capital Peg
Analysis for deal negotiations
What You Get
- Historical working capital review
- Normalized WC calculation
- Peg recommendation
- Deal structure sensitivity
Use Case
Both buyers and sellers in M&A deal negotiations
Know What Your Business Is Worth.
Valuation and QoE work that buyers and advisors trust on both sides of the table.