QofE

searcher profile

April 05, 2023

by a searcher from Harvard University - Harvard Business School in Los Angeles, CA, USA

Hi - Does anyone have a good QofE provider they like that is inexpensive? The deal is pretty small so quite cost conscious. Ideally looking for someone with experience at a larger shop and then hung their own shingle. Thanks!

3
24
337
Replies
24
commentor profile
Reply by a searcher
from Indiana University at Bloomington in Chicago, IL, USA
I second Wiley's comments about Elliott. Elliott was the guy I was going to use if we had a deal large enough and needed a QoE. Elliott seemed professional and his pricing was transparent. If you can roll the expense, if the deal fails, or if there's milestone expensing for the QoE service, that will bring risk alignment more in your favor.

A bit of unsolicited advice / leading questioning, Have you seriously considered whether you need a QoE for this small deal? If you have the right reps and warranties, setoffs, and a material seller note, those are great structuring features in addition to having enough liquid capital to cover deal absorption costs (there's always deal absorption costs that get discovered no matter how much due difference is done). This is assuming a certain searcher risk appetite and that the business is not too complex.

Not trying to sway you, but it's an alternative to be considered. I view QoEs like buying insurance. You need to know where the QoE's service offerings boundaries are so you don't have a false sense risk transfer.

Here's a great overview of Elliott's services just in case.

Good luck!

A Quality of Earnings Report Can Save You Millions: https://www.linkedin.com/pulse/quality-earnings-report-can-save-you-millions-elliott-holland?utm_source=share&utm_medium=member_android&utm_campaign=share_via
commentor profile
Reply by a professional
from Tulane University in Portland, ME, USA
Hi Jeff, you described my situation perfectly - used to be at PwC doing this and started my own practice scaling down for SMBs. Would love to help with your deal. https://calendly.com/petraccagroup/30min
commentor profile
+22 more replies.
Join the discussion