Financial Due Diligence

Our QofE+ is Tailored to Address the Needs of the Lower Middle Market

We have crafted our offering to serve entrepreneurs, independent sponsors, search funds, and lower middle market PE funds that need Big 4 quality outputs at a price that justifies the deal size. As an operations-oriented team, our QofE+ goes beyond checking the box.


What is a Quality of Earnings Plus (QofE+)

  • A quality of earnings report analyzes the historical financials to exclude any non-recurring, one-time events and personal expenses. It provides the foundation for a run-rate view of how the business will perform post-transaction.

  • While traditional QofEs focus on an accounting review, Embarc’s QofE+ offers expanded analysis around customer retention, quota attainment, marketing efficiency, and other KPIs, if desired.

How We’re Different

We have designed our Financial Due Diligence (FDD) practice to be flexible and cost-effective to suit the middle market

  • Flexible hourly-based pricing

  • Seamless integration with post-close FP&A advisory

  • Additional margin and retention analysis

  • Option to forego the PowerPoint report and save cost

  • Agile team that can launch new projects quickly

  • Proactive Net Working Capital target setting

  • Year 1 budget forecast build

Read our blog
Problems relating to quality

Big 4 Quality Outputs at Lower Middle Market Costs

  • We understand the importance of the Quality of Earnings (QofE). The QofE is integral to any M&A project we work on – buyside or sellside.

  • Due to the importance of the QofE analysis, we wanted our clients to benefit from Big 4 quality outputs, even if the deal sizes may be smaller

  • We have designed our QofE practice to be agile, practical, and cost-effective without sacrificing quality.

How We Can Help

A Different Kind of QofE that Addresses the Broader Needs of the Lower Middle Market

There are a lot of middle market financial due diligence (FDD) firms out there, so why did we decided to build yet another one?

Our FDD practice has the option to integrate with our broader M&A team if our clients need additional analytical support that goes beyond the usual QofE report.

Our FDD practice can also seamlessly integrate with our FP&A advisory to identify remedial actions post-close and effectuate those changes post-close if necessary.

Middle market firms are often staffed very lean and our ability to deliver the full spectrum of services ensures a successful transaction at close and after the close.

See How A Tailored Solution Can Benefit Your Vision

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