A Quality of Earnings (QoE) report is a financial analysis that verifies whether a business’s reported profits are accurate, sustainable, and repeatable. It goes beyond standard financial statements to show you what you’re actually buying.
If you’re acquiring a business, a QoE is one of the most important steps in your due diligence process. The failure rate for mergers and acquisitions typically exceeds 70%, primarily due to inadequate due diligence. In fact, it was found that more than 60% of executives point to poor due diligence as the main reason deals fail.
I’ve seen buyers lose hundreds of thousands of dollars because they trusted the financials provided by the target acquisition without verification. A QoE report protects you from overpaying, uncovers hidden risks, and gives you leverage to renegotiate the purchase price if the numbers don’t hold up.
What Does a QoE Analysis Cover?
A thorough QoE analysis examines multiple areas of a business’s financials. Here’s what a comprehensive report typically includes:
- Earnings quality and performance: Analyzes revenue, expenses, and trends to determine the business’s true, sustainable earnings. One-time or unusual items are identified, and any seller add-backs to profit are validated.
- Cash and banking analysis: Reviews bank statements and performs a “proof of cash” to ensure reported numbers match actual cash activity.
- Cost structure and margin analysis: Evaluates operating costs to understand margin stability and potential for future efficiency.
- Customer and vendor concentration: Identifies dependency risks. If one customer accounts for 40% of revenue, that’s a red flag you need to know about.
- Balance sheet and working capital: Reviews assets, liabilities, and working capital trends, including seasonality and cash flow timing.
- Inventory and capital expenditures: Examines inventory valuation methods and historical spending on equipment or assets to forecast future investment needs.
- Liabilities and contingencies: Uncovers off-balance-sheet obligations, pending legal issues, or environmental exposures that could hit you after closing.
- High-level tax review: Flags obvious tax risks without conducting a full tax diligence engagement.
The goal is simple: verify that the earnings you’re paying a multiple on are real and will continue after you take over.
5 Best Quality of Earnings Providers in 2026
Choosing the right QoE provider can make or break your deal. The wrong choice means wasted money on a surface-level report that misses critical issues. The right choice gives you clarity, negotiating leverage, and confidence to move forward.
I’ve used dozens of QoE providers over the years. The five firms below stand out for their expertise, turnaround time, and ability to deliver actionable insights for business buyers like you. Each has strengths worth considering, but they’re not all equal.
Before I get into it, I wanted to first give a shoutout to my own firm, WebAcquisition. If you consider hiring a firm, make sure to get a quote from WebAcquisition. We combine QoE with industry expertise, a feature that many other firms lack.
WebAcquisition – My QoE Firm
- Founded: 2020
- Years of Experience: 55+ years combined
- Team Structure: M&A specialists, CPAs, marketing experts, and operators who actively acquire businesses
- Business Expertise: Each M&A team member runs their own portfolio of businesses. They bring that expertise to each QoE analysis.
WebAcquisition is a buy-side due diligence firm built by operators who actively acquire and sell businesses. The team has reviewed over 1,176 businesses and brings 55+ years of combined M&A experience. Unlike traditional accounting firms, their team includes M&A specialists, CPAs, and marketing experts who each run their own portfolios. This means we are not just checking boxes; we understand the operational realities of running a business post-acquisition.
What Their QoE Covers
The QoE reports go beyond financials. The analysis covers earnings quality, proof of cash, cost structure, customer and vendor concentration, working capital trends, inventory, liabilities, and a high-level tax review. You receive both an Excel workbook and a detailed PDF report. We also offer direct access to due diligence specialists throughout the process, so you can ask questions and get clarity in real time.
Pricing & Turnaround
WebAcquisition offers two QoE options to fit different deal sizes and budgets. The full QoE report starts at $8,900 and includes a comprehensive PDF report plus Excel workbook, delivered in 2-3 weeks. For buyers who need a faster, more affordable option, we also offer a QoE Lite report. The QoE Lite provides the same financial validation and analysis but delivers the findings in working Excel files with brief commentary rather than a full PDF report. This makes it a cost-effective choice for smaller deals or buyers who need quick insights without the full write-up.
Testimonials
Our client testimonials consistently highlight our responsiveness and the depth of our analysis. One client noted that WebAcquisition “identified a critical element in the business that caused us to back away from the deal.” Another mentioned they are “one of the few firms that do a thorough SEO assessment as well as validating revenues.”
Why Choose WebAcquisition?
If you want to work with a team that has active experience running and acquiring businesses, then WebAcquisition should be your go-to. Most QoE firms have no experience running a business, managing a P&L, etc. They are financial specialists only, with no business experience. My firm brings rigorous financial experts with real-life business M&A specialists.
OGS Capital
- Founded: 2006
- Years of Experience: 17+ years
- Team Structure: 30 MBA consultants, CPAs, CFAs, and financial analysts with Big-4 experience
- Business Expertise: Over 200 completed due diligence projects across 40+ industries
OGS Capital is a business consulting firm headquartered in San Diego that has been operating since 2006. While they are primarily known for business plan writing and consulting services, they also offer financial due diligence and Quality of Earnings reports.
Their team includes MBA consultants, CPAs, and CFAs with backgrounds at Big-4 firms. They state they have completed over 200 due diligence projects and have been involved in M&A deals worth a total of $9 billion.
What Their QoE Covers
OGS Capital offers both buy-side and sell-side QoE reports. Their analysis covers normalized EBITDA adjustments, revenue sustainability, working capital requirements, and cash flow evaluation.
They also offer SaaS-specific due diligence that includes subscription revenue quality, churn analysis, cohort retention, and deferred revenue recognition. Their reports are designed for deal values ranging from $500K to $30 million, with different report tiers based on deal size and business type (traditional offline businesses vs. web-based businesses).
Pricing & Turnaround
OGS Capital does not list specific pricing on its website. They offer a free consultation to scope your project and provide a custom quote. Turnaround time is 2-3 weeks for their standard report (deals under $3 million) and 3-4 weeks for their enhanced report (deals over $3 million).
Testimonials
One client noted that OGS Capital “delivered the report on time and within our budget.” Another stated they “were able to identify significant risks of the target company.”
Why Consider OGS Capital?
OGS Capital may be a fit for buyers who want a firm with broad business consulting experience beyond just QoE analysis. Their strength is in traditional offline businesses across a wide range of industries. However, buyers should note that QoE is one of many services they offer rather than their primary focus.
Rapid Diligence
- Founded: 2019
- Years of Experience: 5+ years
- Team Structure: Acquisition entrepreneurs, M&A analysts, and dedicated CPAs
- Business Expertise: SMB acquisitions, including eCommerce, SaaS, content sites, and traditional businesses
Rapid Diligence is a Houston-based due diligence firm founded in 2019 by a group of acquisition entrepreneurs and M&A analysts. They describe themselves as having “set out to provide world-class due diligence and consulting services for small business buyers everywhere.”
The firm has been featured on several acquisition-focused podcasts, including Quiet Light and Acquiring Minds, and maintains a 4.7-star rating on Trustpilot with 24 reviews. Their team breaks down due diligence into five components: Operational, Financial, Market, Strategic, and Technical.
What Their QoE Covers
Rapid Diligence offers both a full Quality of Earnings report and a QoE Lite option. Their full QoE includes normalized EBITDA analysis for two fiscal years plus year-to-date, proof of cash analysis, revenue and expense quality review, customer and vendor concentration, balance sheet review, working capital analysis, accounts receivable and payable aging, inventory analysis, CAPEX trends, off-balance sheet liabilities, and a light tax review.
You receive a PDF report plus direct access to a dedicated CPA throughout the process. The QoE Lite ($6,700+) delivers working Excel files with commentary instead of a full PDF report.
Pricing & Turnaround
The full QoE starts at $8,900+ with a turnaround time of 3-4 weeks, depending on the timely receipt of documentation. The QoE Lite starts at $6,700+ for buyers who have already started some financial analysis and need a more streamlined deliverable. Both services include unlimited client support after delivery.
Testimonials
One client noted: “Fahaad and team conducted a deep and thorough QOE analysis, which gave me the data to make better informed decisions.” Another stated their team “was able to quickly uncover, rebuild P&L and show us the real situation beyond what was stated by the sellers.”
Why Consider Rapid Diligence?
Rapid Diligence could be a fit for buyers who want a firm with deep roots in online business acquisitions, particularly eCommerce, SaaS, and content sites. Their five-component approach to due diligence is comprehensive, and their QoE Lite option offers a more affordable entry point. However, buyers should note they were founded more recently than some competitors, and their primary expertise historically has been in digital businesses rather than traditional SMBs.
Guardian Due Diligence
- Founded: 2017
- Years of Experience: 15+ years (principals in the industry since 2009)
- Team Structure: 17 CPAs led by Elliott Holland (Harvard MBA, former PE professional)
- Business Expertise: Traditional SMBs, including manufacturing, HVAC, healthcare, automotive, and industrial businesses; deals from $1M to $45M
Guardian Due Diligence is an Atlanta-based firm founded in 2017 by Elliott Holland, a Harvard MBA with private equity experience who has been in the acquisition space since 2009. The firm positions itself as “the diligence solution for first-time buyers and self-funded searchers.” Their experience spans over $600 million in transactions and more than 1,500 deals evaluated.
What Their QoE Covers
Guardian offers three tiers: QoE Light, full QoE, and Advised QoE. All tiers include trailing twelve-month EBITDA and working capital analysis. The full QoE adds a PDF report suitable for banks and SBA lenders. The Advised QoE includes 10 hours of Elliott’s advisory time, projection model support, key man risk assessment, and a 65-item red flag checklist.
Pricing & Turnaround
QoE Light starts at $20,000, full QoE at $25,000, and Advised QoE at $40,000. These prices are for deals under $2 million; larger deals cost more. They claim to find “85% of major deal-breaking issues within 7 days” versus approximately four weeks with most CPA firms.
Testimonials
One client stated: “The seller actually reduced their price by 1.5M after going over the reports. That is the value.” Another noted Guardian “determined EBITDA was $0 vs the $800k reported” and “actively recommended against the deal.”
Why Consider Guardian Due Diligence?
Guardian could work for buyers who want hands-on advisory support alongside their QoE, particularly on traditional brick-and-mortar businesses. However, their pricing is significantly higher than other providers on this list, making them better suited for larger deals ($2M+) where the cost is more justifiable.
QoE Prep
- Founded: 2022
- Years of Experience: 500+ deals completed by the team
- Team Structure: CPA-led boutique firm headed by Caleb Basile
- Business Expertise: Manufacturing, SaaS, restaurants, professional services, healthcare, and technology; deals from $1M to $100M
QOE Prep is a boutique firm founded in 2022 that specializes exclusively in Quality of Earnings preparation. Led by CPA Caleb Basile, the firm serves investment bankers, M&A brokers, private equity groups, and individual buyers. They completed 57 QoE reports in 2024 alone. Their positioning is focused: unlike general accounting firms, they do QoE work and nothing else.
What Their QoE Covers
Their analysis includes a QoE summary with seller and due diligence adjustments, recast P&L, EBITDA bridge analysis, variance analysis, seasonality review, balance sheet analysis, NWC peg, AR/AP aging, inventory analysis, and concentration risks (revenue, vendor, salesman, employee). They also include proof of cash, payroll reconciliation, book-to-tax reconciliation, and revenue reconciliation.
Pricing & Turnaround
QOE Prep does not list specific pricing on their website. They claim to complete QoE analyses in under two weeks, faster than most firms. Contact them directly for a custom quote.
Testimonials
One client noted: “Caleb and his team were highly responsive and professional. Their work has been delivered at high quality with speed.” Another stated: “He’s thorough, knowledgeable, and most importantly, this is all he does!”
Why Consider QOE Prep?
QOE Prep may be worth considering if you want a specialist firm that focuses exclusively on QoE work. Their fast turnaround (under two weeks) is appealing for time-sensitive deals. However, as a newer firm founded in 2022, they have less of a track record than established providers. Their lack of public pricing also makes it harder to compare costs upfront.
What To Look For In A QoE Provider
Not all QoE providers are created equal. Before you commit to one, here’s what you should evaluate:
- Team expertise: Does the team include licensed CPAs? A QoE is a financial analysis; you want credentialed professionals doing the work, not generalists.
- Industry expertise: Does the provider have experience with your type of business? A firm that specializes in manufacturing may miss nuances in a SaaS or content business.
- Service quality: What does the deliverable look like? Ask for a sample report. Some providers deliver comprehensive PDF reports; others provide Excel workbooks. Know what you’re getting.
- Response time to Q&A: During diligence, questions come up fast. How quickly does the provider respond? Can you get on a call with the analyst directly, or are you stuck going through a sales rep?
- Report turnaround time: Most QoE providers take 2-4 weeks. If you’re on a tight LOI timeline, ask about expedited options.
- Testimonials & references: Look for verified client reviews. Better yet, ask if you can speak with a past client directly.
- Report pricing: QoE pricing ranges wildly, from $6,700 to $40,000+ depending on the provider and deal size. Understand what’s included at each price point.
- Who is doing the actual analysis? This is the question most buyers forget to ask. Is your report being prepared by the senior CPA you spoke with, or is it being handed off to a junior analyst or offshore team?
The ideal QoE provider combines CPA credentials with hands-on M&A experience. Someone who has actually acquired businesses themselves will know where target acquisitions hide problems and what questions to ask. A provider who only does accounting without real deal experience may produce a technically correct report that misses the practical risks that matter most to you as a buyer.
Verdict
A Quality of Earnings report is one of the best investments you can make when acquiring a business. The cost is minimal compared to the risk of overpaying or buying a business with hidden problems.
After reviewing dozens of QoE providers over the years, WebAcquisition, in my view, remains the best QoE provider for SMB acquisitions up to $5M. Our team combines CPA-led financial analysis with hands-on M&A experience from operators who actively acquired businesses themselves. That combination is rare, and it’s exactly what you want when putting your capital on the line.
