When negotiating a transaction, buyers and sellers attempt to develop a complete financial analysis and picture of earnings and EBITDA. To accomplish this goal, an audit of financial statements and a quality of earnings analysis are each contemplated as part of the sale preparation process.
While significant differences exist between a financial statement audit and a quality of earnings report, the two are complimentary when evaluating finances in a transaction. Read our white paper to understand the key similarities and differences between the two and how they can be an integral tool in ensuring a successful transaction.
Qualifying the numbers
In an article with Private Equity Manager, McGladrey's Moore and Mazza discuss how to get a snapshot of a target company's financial health using an audit report and a quality of earnings analysis.