Add-back schedule with documented support
Every normalization and add-back is itemized, sourced to the GL or bank data, and adjudicated by a credentialed reviewer. No unsupported adjustments.
The most defensible QoE report a lower-middle-market buyer can put on the table.
Quality-of-Earnings Diligence Engine delivers a finished, reviewer-signed Quality of Earnings report — normalized adjusted EBITDA with documented add-back schedule, net-working-capital peg, revenue and margin quality, concentration and debt-like-item analysis, plus supporting databook — checked against a deterministic completeness standard before a credentialed reviewer releases it.
Every element of a defensible QoE reportGL/bank transaction normalization & reconciliationAdd-back adjudication & NWC peg by credentialed reviewerSpecialist release on every report5-business-day SLA
Why deals fail
A single miscalculated add-back can blow up a closing.
Roughly one in three signed LOIs never close; QoE discrepancies account for nearly half of failed deals. Retrades cluster when adjusted EBITDA is off by more than ~15%. For a self-funded searcher on a 45–60-day SBA financing clock, a six-week boutique turnaround or a $40k+ fee is not just expensive — it's deal-breaking.
Most lower-middle-market buyers run QoE by handing raw data to an overbooked boutique or skipping it entirely. The result: overpayment, retrade, or a blown loan. The Big 4 won't touch sub-$3M-EBITDA deals, and boutiques are backed up by the accountant shortage.
Quality-of-Earnings Diligence Engine exists to close that gap with a single, exhaustive standard applied identically to every file.
~1 in 3
signed LOIs never close; QoE discrepancies ≈ half of failed deals
The benchmark
Measured against the elements of a defensible QoE report — every component gate-checked.
We do not summarize best practices and hope. Every report is scored against a versioned rule pack tied to the exact workstreams of a transaction-quality QoE. These are the components each report is held to.
NWC target with trend analysis
A deterministic NWC peg is computed from trailing 12-month data, with a documented trend and rationale. The peg is verified to be consistent with the deal's working capital definition.
Revenue quality, margin trends, and anomalies
Revenue is categorized by type, trend, and quality flags (e.g., one-time, concentration). Gross and EBITDA margins are trended and benchmarked. Anomalies are flagged.
Customer, vendor, and product concentration
Concentration is quantified and stress-tested. Any concentration risk above 10% is explicitly noted and included in the report.
Identification of debt-like items and off-balance-sheet obligations
All items that behave like debt (e.g., accrued liabilities, deferred revenue, litigation exposure) are identified and quantified.
Full databook with source documents and reconciliation
Every number in the report is traceable to a source document (GL, bank statement, tax return). The databook is organized and indexed.
How a report is built
Intake to credentialed release, with deterministic gates the AI cannot overrule.
AI extracts, categorizes, reconciles, and drafts. Deterministic rules — running as code, outside the model — decide what is complete. A credentialed reviewer signs every release. That order is never reversed.
01
Delinquency Gap Scan
Upload the target's GL, bank statements, tax returns, payroll, and AR/AP aging. We return a free completeness read: which QoE elements you already have and which are missing.
02
Data ingestion & normalization
As your authorized clerical agent, we ingest and normalize all financial data into a standardized chart of accounts, reconciling bank statements to GL.
03
AI-driven draft schedules
The AI engine categorizes transactions, flags add-back candidates, computes NWC trends, and drafts the revenue quality, concentration, and debt-like items sections.
04
Deterministic completeness gates
All amounts reconcile to source documents; the add-back schedule is complete; NWC peg is computed; concentration thresholds are checked; any failure blocks release.
05
Credentialed reviewer adjudication
A CPA/CVA/ABV-holder or seasoned TAS reviewer adjudicates add-backs, sets the NWC peg, and signs the report. High-value or complex deals route to a second reviewer.
06
Delivery
You receive the finished QoE report: executive summary, normalized EBITDA, add-back schedule, NWC peg, revenue quality, concentration, debt-like items, and full databook — ready to put on the negotiating table and hand to your lender.
The bar we hold
Rigor you can measure.
100%
Credentialed-reviewer-signed
No report ships without a human signature.
5 days
Standard SLA
From complete intake to released report.
<1%
Critical-defect target
Tracked against a gold-standard report library.
4+
Data-source types
GL, bank statements, tax returns, payroll, AR/AP aging — every applicable file.
Why Quality-of-Earnings Diligence Engine
Built to be the most thorough option a buyer has.
Documentation-complete, by design
The deliverable is completeness itself — every QoE element accounted for or explicitly exception-coded. Nothing is left implicit.
Deterministic, not vibes
The gates that decide completeness are code, not a model's opinion. A drafting error cannot slip past a required element.
In its lane, on purpose
We prepare documentation and run analysis as your clerical agent. We never provide legal, tax, or investment advice, and we do not opine on price or value.
Engagement
Flat fee, per released report. No contingency, ever.
Simple, predictable, and aligned with a documentation standard — not a cut of any deal.
- A free Delinquency Gap Scan before you commit — see exactly what is missing.
- One flat fee per released QoE report; disclosed pass-through data-ingestion fees.
- Optional fixed-fee second-reviewer for complex or high-value deals.
- Optional Sale Continuity Add-on for post-report negotiation support and lender-ready exhibits.
FAQ
Questions, answered precisely.
Is Quality-of-Earnings Diligence Engine a law firm?
No. Quality-of-Earnings Diligence Engine, a service of Your Deputy, Obuke LLC, provides documentation-completeness services. It is not a law firm, does not provide legal advice, and does not represent you in any legal matter. Credentialed reviewer review is available and recommended for complex or high-value deals.
Do you provide a valuation or opinion of value?
No. We quantify normalized earnings and working capital for a transaction; we do not opine on price, provide a conclusion of value, or give tax/legal/investment advice.
What makes a report 'complete'?
Completeness is defined by the QoE standard: normalized adjusted EBITDA with documented add-back schedule, NWC peg, revenue and margin quality, concentration and debt-like-item analysis, and full databook. Deterministic gates enforce each one before release.
How fast is it?
The standard SLA is five business days from complete intake to a credentialed-reviewer-released report. The free Gap Scan is returned much sooner and tells you exactly what is still needed.
How are you priced?
A flat fee per released report, plus disclosed pass-through data-ingestion costs. No contingency and no percentage of any deal value.
See what's missing before it costs you a deal.
Start with a free Delinquency Gap Scan. Send your target's financial data and we'll return a completeness read against every element of a defensible QoE report.
Documentation-completeness service · not legal/tax/investment advice · the buyer uses the report in negotiations.