Inside the Deal Room: Understanding Earnings Quality Before You Sell

transaction planning May 29, 2024

 

Selling your business is a monumental decision that involves careful consideration and strategic financial preparation. In the latest episode of THE EXIT Podcast, our guests delved into the crucial role that Quality of Earnings (Q of E) plays in this process. Brett Dearing CEPA, CMAA, Host of The Exit Podcast and guest Corey Massella from UHY LLP, Certified Public Accountants provided invaluable insights on how Q of E not only garners the seriousness in potential buyers but also significantly beefs up the eventual selling price. Let's dig deeper into their discussion and understand how to optimize your business's financial health before a sale.

The Importance of Preparing Financially

When the decision to sell looms, a preemptive strike is your best defense. As Brett highlighted, preparing financially isn't just about sprucing up your earnings on paper; it's about conducting thorough due diligence with an eye toward turning every stone and closing...

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