QofE

Know the True Value   Before You Buy with a Proven Quality of Earnings Report

At Proven, we deliver in-depth, data-driven analysis to help you make informed decisions with confidence. Are you buying, selling, or investing? Our expert team ensures you have the real value behind the numbers so there are no surprises after the deal is done.

Our Proven Approach to QofE Services

Identify & Prioritize Issues

We dive into the company’s financials, normalizing earnings, identifying red flags, and evaluating key revenue and expense trends to ensure accuracy and reliability.

Risk & Sustainability Assessment

Our team assesses the sustainability of earnings, cash flow drivers, customer concentration risks, and potential liabilities to uncover any hidden vulnerabilities.

Clear & Actionable Reporting

We provide a detailed yet easy-to-understand report with key insights, red flags, and opportunities—empowering you to make confident, informed decisions.

Why Proven’s QofE Services?

  • Beyond the Numbers
    We don’t just verify financials; we uncover the story behind them, providing insights that drive smarter decisions.

  • Tailored for Your Deal
    Every business is unique, and so is our approach. We customize our analysis to focus on what matters most to your transaction.

  • Experienced CFO-Level Insight
    Our team brings deep financial and operational expertise, offering a strategic perspective beyond traditional accounting firms.

  • Clear, Actionable Reporting
    No jargon, no fluff—just straight-to-the-point insights that help you make informed, confident decisions.

  • Speed Without Sacrificing Accuracy
    We deliver high-quality, thorough reports on time, so you can keep your deal moving forward.

  • A Trusted Partner
    We work with you, not just for you, acting as a true financial ally throughout the process.

QofE
Solutions

Recast P&L

A recast profit and loss statement incorporates necessary adjustments, including EBITDA addbacks, to present a more accurate representation of the company’s operational performance and earning potential.

Key Insights

This section highlights the most critical findings from our in-depth financial review, identifying trends, discrepancies, and anomalies that could impact valuation or business decisions. These insights offer a clear snapshot of the company’s financial health and operational performance.

Adjusted EBITDA

We refine EBITDA by removing non-recurring, non-operating, or unusual expenses, providing a clearer view of the company’s true operating performance. This adjustment helps assess profitability and cash flow potential, ensuring more informed decision-making.

Seasonality & Profit Margin

This analysis examines revenue and profit fluctuations across different periods, helping to normalize financial performance. Understanding seasonality allows for more accurate forecasting and long-term profitability assessment.

P&L Analysis

We conduct a detailed review of the income statement at the monthly, quarterly, and annual levels to uncover trends, anomalies, and insights into cost structure and revenue streams. This deep dive enhances understanding of financial efficiency and sustainability.

Customer & Vendor Concentration

We assess the company's reliance on key customers or suppliers to identify potential risks. A high concentration in either area may indicate revenue or supply chain vulnerabilities that could impact financial stability.

Adjusted Net Working Capital (NWC)

We adjust for changes in working capital to reflect true operational needs. Analyzing net working capital provides insights into short-term financial health and the company’s ability to meet obligations.

Balance Sheet Analysis

By evaluating assets, liabilities, and equity, we gauge financial stability, liquidity, and risk exposure. This analysis helps uncover potential financial risks or opportunities for strengthening the company’s position.

AR & AP Aging Analysis

Reviewing accounts receivable (AR) and accounts payable (AP) aging helps assess liquidity, cash flow efficiency, and potential collection or payment issues that could impact financial performance.

Proof of Cash

We verify cash flow accuracy by reconciling bank statements with reported cash movements. This ensures financial statements reflect actual cash activity, not just accounting entries.

Book-to-Tax Reconciliation

This process compares financial records with tax filings to identify discrepancies between reported earnings and taxable income. It ensures accuracy, compliance, and proper tax adjustments.

Payroll Reconciliation

We verify payroll records against financial statements to ensure accuracy in labor costs and tax compliance. This helps identify discrepancies that could impact financial reporting and compliance.

Schedule a consultation to see how Proven can help your business thrive.

Let’s discuss Proven’s streamlined back-office solutions and strategic executive leadership.