Originally published: 30/08/2026 18:19
Publication number: ELQ-72655-1
View all versions & Certificate
Publication number: ELQ-72655-1
View all versions & Certificate
How to Assess if a Business’s Earnings Quality Is Deal-Ready
A practical QoE checklist to assess whether reported EBITDA, revenue, expenses and working capital can withstand M&A due diligence.
by EasePro Consulting - Anchal SinghalDirector at EasePro Consulting, Chartered Accountant with more than a decade experience in financial consultingFollow
Introduction
Use this checklist to assess whether a business's reported earnings can withstand M&A due diligence. The analysis should generally cover the trailing 36 months, with the TTM period as the headline period.
- Step n°1 |
Verify the Balance Sheet
- Bank balances tie to direct bank statements.
- Debt balances reconcile to lender statements.
- Credit cards and merchant accounts reconcile properly.
- All material balance-sheet accounts and off-balance-sheet exposures are identified.
by EasePro Consulting - Anchal SinghalDirector at EasePro Consulting, Chartered Accountant with more than a decade experience in financial consultingFollow
