Quality of Earnings (QoE) reports are essential in financial due diligence, but at 512Financial, we believe a truly valuable QoE goes beyond the standard checklist. As the head of our QoE team, I’ve seen firsthand how a tailored, insightful QoE report can be a game-changer—not just for M&A, but for a range of strategic decisions.

Our approach? We dig deeper, cross the line into full financial due diligence, and provide operational insights that others miss, all with one goal: to deliver a report that speaks directly to our client’s needs and future plans.

Why Our QoE Stands Out

The typical QoE report is overly templated and provides a snapshot of a business’s financials —sure, that’s useful, but our clients deserve more. At 512Financial, we tailor each report to uncover what truly matters to the client.

If a client needs to understand operational efficiency, we’ll analyze production metrics. If they’re eyeing future growth, we’ll dig into customer acquisition costs, revenue drivers, and opportunities for cost optimization.

And while most firms stick rigidly to standard EBITDA adjustments, we’re not afraid to look at the broader picture, including normalization adjustments, operational analysis, and industry benchmarking.

Not Just for M&A: The Versatile Power of a QoE Report

Many people think QoE reports are solely for M&A transactions. In reality, they are invaluable for any major strategic decision – financial or operational. Whether preparing for a debt raise, positioning for equity investment or looking to sharpen internal operations, a QoE report can provide the clarity and confidence you need.

Our clients have used our reports to guide everything from strategic pivots to negotiations with key stakeholders. A QoE report rich in actionable insights becomes a strategic tool—not just a financial document.

Key Areas We Focus On

• Financial Statement Analysis with Depth: We do more than just check off accounts on a balance sheet. We assess the value of assets, scrutinize revenue recognition practices, and analyze cash flow sustainability. For us, every line item tells a story, and we ensure our clients get the full narrative.

• Revenue and Cost Breakdown Beyond the Standard Adjustments: Our team doesn’t stop at surface-level adjustments. We dig into product-level margins, and cost structures, and even evaluate how well costs align with client-facing and operational personnel. This attention to detail allows our clients to see where real profit lies and where there’s room for optimization.

• Operational Metrics and Benchmarking: Operational health is a crucial piece of any business’s value, but it’s often ignored in traditional QoE reports. We include operational metrics like customer acquisition costs, inventory turnover, and production efficiency, giving clients a window into day-to-day performance and potential growth opportunities.

• Strategic Risk Assessment: Every transaction has its risks, but identifying and mitigating these risks is where we stand out. We collaborate with clients to understand their specific concerns, assess financial and operational risks, and develop strategies to minimize them, paving the way for a smoother transaction process.

Why Choose 512Financial?

We’re not your average QoE firm. Here’s why clients choose us time and time again:

• Industry Buy & Sell-Side Experience: Our team isn’t comprised of just accountants and lifer QoE practitioners; we have 10+ years working in Industry in various Strategy, M&A, and FP&A capacities. This experience allows us to expand beyond the cookie-cutter QoE reports that most firms provide and deliver actionable insights that our clients rely on to drive strategic decisions.

• Customized, Cost-Effective Solutions: We understand every business has unique needs, so we customize our approach to fit yours. And because we’re lean and agile, we deliver these solutions affordably without compromising quality.

More Than Due Diligence: A Partnership for Success

Beyond due diligence, we offer services in financial reporting, financial modeling, budgeting/forecasting, working capital and cash flow management, capital raise and investor readiness, and more. Whether project-based assistance or ongoing support, our goal is to drive your business forward with expert financial insights.

Choosing 512Financial for your QoE and financial due diligence needs means choosing a partner dedicated to your success. We see our work as part of your bigger picture. By diving deep into financials and operations, we give you the clarity and confidence to make strategic decisions that add long-term value, not just short-term fixes.

Download the 2025 QoE Trends Report

Gain deeper insights into the trends shaping quality of earnings and financial due diligence in 2025. Download the report here.

Contact Me Today Ready to see how 512Financial can transform your business? Reach out for a consultation on our tailored, holistic QoE services. Let’s discuss how we can support your strategic financial decisions.