How a QoE Report Can Increase Business Sale Value
When preparing to sell a business in Canada, one of the most powerful tools you can use is a Quality of Earnings (QoE) report. A QoE goes beyond audited financials to show buyers the sustainability of your earnings.
Here’s the step-by-step process:
Information Gathering – Collection of financial statements, tax returns, and contracts.
Normalization & Adjustments – Identifying non-recurring revenues and expenses.
Detailed Analysis – Reviewing earnings drivers, revenue quality, and cost structures.
Risk & Opportunity Review – Highlighting potential issues and strengths.
Final Report – A clear QoE deliverable that supports negotiations.
Seller’s QoE Checklist (Canada):
3 years of financial statements & tax filings
Management-prepared financials (monthly/quarterly)
Accounts receivable and payable listings
Debt schedules and loan agreements
Customer and supplier contracts
Forecasts and budgets
Why it matters:
Being organized allows the process to run smoothly, reduces buyer skepticism, and can help achieve stronger valuations.
At Aspen Valuations, we provide independent QoE reports tailored to Canadian market expectations.