Certified Quality of Earnings Report
Are you looking for a reliable assessment beyond self-reported financials for your next acquisition? BizWorth's Certified Quality of Earnings Report, prepared by our NACVA Certified Master Analysts in Financial Forensics (MAFF), provides a meticulous analysis of a company's historical performance. This report covers key aspects such as historical revenues, expenses, sales trends, customer concentrations, and expense add-backs, offering stakeholders a comprehensive view during the due diligence phase. With two years of cash proofing, an Excel workbook of analysis, and a complimentary 1-hour review via Zoom, our report ensures informed decision-making. Typically delivered in six weeks, with rush options available, this report is an essential tool for buyers, investors, lenders, and brokers.
About this Report
How to Order
Here's an easy-to-understand explanation of the process to order and provide the information needed to obtain a quality of earnings report:
Step 1: Click the Green Get Started Button
Initiate the process by clicking "Get Started" and provide essential details about yourself and the company. This includes specifying the reason for the report, number of legal entities, annual sales, and property ownership.
Step 2: Select and Customize Your Report
After entering company details, our system matches your needs with suitable reports. Choose your desired report, customize it if needed, and add it to your cart. Review additional recommendations, enhance your report options, and proceed to checkout. Pay securely with major credit cards, Affirm, or ACH.
Step 3: Provide Additional Information
On the "Information We Need from You" page, submit the required details about the company. Subsequently, you’ll receive an email inviting you to the Data Collection Portal.
Step 4: Accept Invite to Data Collection Portal
Check your email for an invitation from officeadmin@datacollectionportal.com to the secure Data Collection Portal. Accept the invite to create your account.
Step 5: Complete Portal Intake Form
Navigate through the portal, filling out required forms and carefully following instructions. Save your progress if needed. Once finished, click "I've finished" to notify BizWorth that your valuation application is ready to commence. This initiates the appraisal, starting the countdown for delivery within the specified turnaround time. Check your email for updates.
This process is designed to be simple, efficient, and tailored to your business valuation needs.
How to Prepare
To help our appraisal team complete your report efficiently, here’s some information that will be useful to gather along the way. Don’t worry if you don’t have everything upfront—we’ll guide you through the process in the Data Collection Portal:
2 Years of Financial Statements: Upload financial statements (Profit &Loss Statement and Balance Sheet) for the last two full years or since inception if less than two years.
Year-to-Date Financial Statements: You will also be asked to upload a year-to-date financial statement through the report effective date,provided by month. It is preferred to use a month-end, quarter-end, or year-end date when possible.
2 Years of Subsidiary Financials (if applicable): If your business has subsidiaries, you will be asked to upload financial statements for the last full five years or since inception if less than five years.
2 Years Revenue by Client: Revenue by client for last 12 months and two full years (Excel)
2 Years Revenue by Product/Service: Revenue by product/service for last 12 months and two full years (Excel)
2 Years General Ledger: General ledger for last 12 months and two full years(Excel)
2 Years Bank Statements: Bank statements for last 12 months and two full years, if possible.
2 Years Payments by Vendor: Payments by vendor for last12 months and two full years (Excel)
2 Years Payroll Journal Payroll: Journal/Log for last 12months and two full years, if possible.
2 Years Aging Receivables: Log for last 12 months and two full years, if possible.
Other Documents: Inventory List, Fixed Asset List, Depreciation Schedule, Receipts/Proof from Owner for Prospective Addbacks.
Business Profile: Legal business name, DBA, business address, legal entity, date of formation, subsidiaries and affiliates, locations and company website.
Income Statement Information: Tax return preparer, basis of financial statements,frequency of preparation, fiscal year, NAICS and SIC codes, predictability,COGS, operating expenses, non-cash expenses and other income and expenses.
Balance Sheet Information: Assets, inventory, land, fixed assets and equipment,non-operating assets, liabilities, sources of credit, pending litigation.
Nature and History: Include brief history of the company, major historical events, current number of employees and contractors,shareholder ownership and compensation, products and services, customers and market conditions, competition and differentiation, management and compensation,current operating levels and capacity.
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Quality of Earnings
Support the due diligence phase with a fast, affordable way to validate the past financial performance of a business.
