Customized QoE Reports to Unlock Financial Potential
Financial Due Diligence for Every Industry
Over 30 Years of Financial Planning Experience

QoE Reports for Confident Acquisition Decisions

Buying a business isn’t just about the story behind the numbers; it’s about the truth within them. At Small Business Financial Intelligence (SBFI), our Quality of Earnings (QoE) Reports are designed to give ETA buyers, investors, and business acquirers a clear, validated picture of a company’s true earning power.

By leveraging our expertise and financial modeling services, we help you analyze all the numbers you’re tasked with evaluating, providing the insight you need to interpret exactly what they mean.

Whether you’re preparing to acquire, negotiate, or validate a potential investment, our QoE reports go beyond standard due diligence to uncover the financial realities that drive long-term performance and value!

What Is a Quality of Earnings Report?

A Quality of Earnings Report evaluates a company’s financial statements to determine whether its reported earnings accurately reflect sustainable, ongoing profitability. Where traditional accounting provides a snapshot, a QoE report delivers a diagnosis.

Our analyses examine everything from revenue recognition and expense normalization to one-time adjustments and working capital trends, giving you a reliable, unbiased foundation for decision-making. Schedule an exploratory conversation today and move through your acquisition with confidence!

Why ETA Buyers Rely On SBFI’s QoE Reports

We understand that small business acquisitions demand precision, speed, and context. Our approach is built for the ETA (Entrepreneurship Through Acquisition) community and other sophisticated buyers who need insights, not just data.

When you partner with SBFI, our QoE reports will help you identify:

Analytical Depth: Every report dissects the business’s core profitability drivers and risk areas, ensuring you know what’s real versus what’s been recast.
Investor-Oriented Insight: We align our analysis with investor priorities, including cash flow quality, normalization adjustments, seasonality, and sustainability.
Actionable Recommendations: Our findings translate directly into negotiation leverage and acquisition strategy.
Speed & Transparency: We know timelines in business deals are tight. Our team delivers concise, high-impact reports quickly, with direct communication throughout the process.

Clarity, Context, & Credibility: The SBFI Difference

Our team blends financial analytics with real-world business acumen. Each QoE report reflects not just accounting expertise, but a deep understanding of what makes small businesses succeed (or fail) post-acquisition.

We take pride in producing QoE reports and analyses that are:

Independent: No conflicts of interest, no biased narratives.
Practical: Built for dealmakers, not auditors.
Strategic: Focused on what drives valuation, cash flow, and operational success.

Whether you’re evaluating a $1M or $50M transaction, our mission is the same: to help you make informed, confident acquisition decisions backed by trusted financial intelligence.

Our Financial Due Diligence Process: Turning Complexity into Confidence

Every QoE engagement begins with a deep understanding of your acquisition thesis. At SBFI, we offer three options for a standardized QoE package of services to choose from: Pre-QoE Screening, QoE-Lite, and Full QoE.

Here’s a breakdown of what each package includes:

Purpose
Early-stage "smell test" of the business before signing LOI or spending heavily
Ideal Use Case
Buyer evaluating multiple targets; wants to avoid wasting time
Scope of Work
Review of summarized financials, owner adjustments, key risks
Deliverables
5-6 page red-flag report with estimated normalized EBITDA
Data Required
3 years financials, tax returns, basic GL detail
Turnaround Time
5-7 business days
Confidence Level
Moderate
Typical Pricing
$2,500
When to Use
Before LOI or as quick screen
SBFI's Role
Analyst and advisor

Purpose
Confirm key financial assumptions before final offer or lender presentation
Ideal Use Case
Serious buyer under LOI; needs confidence before committing
Scope of Work
Limited testing of P&L, balance sheet, and normalizations
Deliverables
15-20 page summary report with bridge, trends, and risk commentary
Data Required
3 years financials, trial balances, customer/vendor data
Turnaround Time
2-3 weeks
Confidence Level
High
Typical Pricing
$7,500-$10,000
When to Use
After LOI, pre-financing
Financial diligence partner

Purpose
Full audit-style deep dive for final diligence and lender reliance
Ideal Use Case
Confirming numbers pre-close or satisfying lender/investor
Scope of Work
Full verification of all financial statements and trends
Deliverables
30-40 page detailed QoE report with exhibits, reconciliations, and appendices
Data Required
Full Gl export, bank statements, contracts, tax filings, AR/AP agings
Turnaround Time
4-5 weeks
Confidence Level
Very High
Typical Pricing
$15,000-$24,000
When to Use
Post-financing or as condition of lender due diligence
Financial diligence partner

Note: If you need specific information or data that is not included in these packages, customized QoE services are also available to fit your needs.

Once we’ve established which QoE package is best for you and your acquisition goals, our financial due diligence process will provide structured, yet flexible, insight that ensures efficiency without sacrificing thoroughness.

Here’s a closer look at how it works:

Data Collection & Initial Review

We gather financial statements, tax filings, and supporting schedules to establish a comprehensive baseline.

Earnings Normalization

We identify add-backs, one-time expenses, and owner-related adjustments to reveal true recurring earnings.

Revenue & Margin Analysis

Our team dissects revenue concentration, customer trends, seasonality, and margin variability for a full operational picture.

Working Capital & Cash Flow Review

We evaluate liquidity health and cash conversion efficiency, all of which are vital indicators of sustainability.

Report Delivery & Consultation

You’ll receive a detailed, investor-ready report along with a live review session to discuss findings, risks, and implications.

Partner with SBFI to Help Guide Your Next Acquisition

When every number counts, trust a partner who sees beyond the spreadsheet. SBFI’s Quality of Earnings Reports give you the insight, clarity, and confidence needed to move through any deal, always on your terms.

Led by our founder, Michael Dorsey, we bring over three decades of financial analysis experience to the table and do our best to equip you with clear, data-driven financial insight for your business!

Contact us today to learn how SBFI can support your next acquisition with data-driven precision and investor-grade transparency.

Our Financial Modeling Process

Initial Meeting

We’ll answer all your questions when it comes to our financial modeling services. Let us help you understand exactly how our electronic spreadsheets are modeled based on your financial situation and future goals.

Discovery Discussion

We’ll review all aspects of your company – from analyzing your current financial situation to assessing all your future objectives and goals – to create an accurate financial model tailored to your business.

Further Discovery

We’ll conduct weekly meetings with you to sift through your company’s financial data and operations. All business drivers are uncovered and reviewed based on how you see your business currently and in the future. Primary and secondary drivers are owner determined and installed in the model as levers.

Model Delivery

The iterative and collaborative discovery discussions that identified all primary and secondary drivers will culminate in a final meeting where the delivery, explanation, and documentation of a customized Decision Tool will take place. The levers can be pulled to model infinite current and future business scenarios, thereby improving business decision making.

What Our Clients Say

I had the privilege of closely working with Michael on creating a complex financial model for my multi-location business with various revenue streams. Michael's expertise and commitment were unparalleled. He quickly understood the intricacies of my business. He tailored a commendable financial model that captured the complexities of our operations and enabled a comprehensive analysis of our financial performance and future planning. Unlike other experts we worked with, Michael wasted no time and efficiently executed the project. The financial model he crafted not only proved to be accurate but also offered valuable insights for making informed business decisions. His analytical skills and deep understanding of financial dynamics exceeded our expectations. I wholeheartedly recommend Michael!

-Zahnia H.

I can't thank SBFI enough for their invaluable support in shaping the success of my business. Michael's expertise in financial modeling was a game-changer, allowing me to assess my business's viability before taking the leap. What set SBFI apart was their personalized approach – Michael took the time to interview me, gaining a deep understanding of my business. This personal touch made me feel like I had a true partner in the journey. His honest insights into financial options, coupled with an optimistic outlook, not only managed my expectations but expanded them, giving me the confidence to move forward with business expansion. With SBFI, it felt like more than a service; it was a collaborative effort in growing my business.

-Marlee J.