Financial Due Diligence & Quality of Earnings Model

Description
A transaction-ready financial due diligence workbook built for acquisition screening, sell-side preparation and Quality of Earnings analysis. It bridges reported EBITDA to normalized EBITDA, separates recurring from non-recurring adjustments, analyzes revenue and margin trends, reviews working-capital behavior, and organizes diligence findings into decision-ready outputs.

The workbook contains ten linked tabs: an executive summary, read-me guide, control panel, monthly profit and loss schedule, adjustment log, Quality of Earnings bridge, revenue analysis, net working-capital analysis, net-debt schedule, and diligence findings tracker. Inputs are clearly marked, calculated outputs are separated from assumptions, and model checks flag incomplete or inconsistent sections.


Use the monthly P&L to load source financials, then document each proposed adjustment with category, evidence, owner and status. Accepted and open items flow to the normalized EBITDA bridge. Revenue analysis shows growth, concentration and gross-margin patterns. The working-capital schedule supports trend analysis and an illustrative peg, while the net-debt schedule separates debt, debt-like, cash-like and excluded items. Open issues roll into the findings tracker and executive summary.


Illustrative data is included so the logic and presentation can be reviewed immediately. Replace it with company data and independently validate all material adjustments, classifications and assumptions. This tool provides analytical decision support; it is not an audit, accounting opinion, tax opinion or legal advice.