Quality of Earnings (QoE)

A diligence report, usually by an accounting firm, that tests how sustainable and cash-backed a target’s reported EBITDA is — normalising one-offs, owner costs and aggressive recognition. Central to price negotiations in private deals.

How a deal actually runs · 5 of 11Next: SPA (Sale & Purchase Agreement)

Where Quality of Earnings (QoE) comes up

Working Capital and Quality of Earnings: Where Deal Value Actually MovesThe headline price is agreed early. Working capital and QoE decide what actually gets wired.Read the guide — 11 min The Private Equity Deal Process, Teaser to SigningAn associate spends most of the year on deals that do not happen. Knowing the sequence is how you understand which work matters and when.Read the guide — 12 min Financial Statement Analysis: Reading a Company ProperlyAnyone can pull a margin from a filing. The skill is knowing which three numbers in this company explain the other forty.Read the guide — 12 min

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Investment Banking interview prep

Related Deal Process terms

Exclusivity Signing vs. Closing Letter of Intent (LOI)Earnout Working Capital Adjustment MAC / MAE Clause

How a deal actually runs: keep going

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Browse the full glossary — 340 finance recruiting and technical terms, in plain English.