Quality of Earnings (“QOE”)

Lakelet Advisory Group’s QOE process involves more than addressing the accounting and profit & loss associated with the company. A QOE report is paramount in establishing the value of a business by analyzing and reporting on detailed aspects that may not be readily identifiable or available to a seller, buyer, or investor in analyzing the financial statements.

The QOE report highlights the key aspects of a business, including, but not limited to:

  • Normalized level of EBITDA and the addbacks to bridge to and Adjusted EBITDA;

  • Fluctuations in annual and monthly financial information; and

  • Revenue and gross margin by product, customer, or distribution segments.

Equally germane is the determination of the necessary cash flow required to maintain this Normalized EBITDA. This includes, but is not limited to:

  • Capacity

  • Risk Identification

  • Overall market/product considerations

  • Necessary expenditures on infrastructure, facilities, and human resources to maintain net cash flow

Why Lakelet Advisory Group?

As a co-founder to a private equity firm, we understand what is required to properly access a company and its associated risks from multiple lens . Another critical attribute the firm brings is its experience in financial forensics (Certified in Financial Forensics) – accordingly, we know how and when to “dig” into the details to provide our clients with the necessary support to generate a more informed decision.