Sell-Side Quality of Earnings: How Practice Owners Get Top Dollar
How a sell-side quality of earnings report helps practice owners get top dollar, close faster, and keep buyers honest during negotiations.
Originally recorded with Dave Kittle on The Dave Kittle Show.
►EXECUTIVE SUMMARY
1) CLEAN FINANCIALS PROTECT YOUR PRICE: Reconcile the bank statements to the tax returns before a buyer does. Buyers cut the price for every surprise they find.
2) A SELL-SIDE QoE GIVES BUYERS CONFIDENCE: An independent report on your earnings shortens the sale and gives buyers a reason to trust your adjusted EBITDA.
3) FIX PAST ACCOUNTING PROBLEMS BEFORE YOU SELL: Show what drives revenue and why costs are consistent. Tell that story before the buyer tells their own.
► CHAPTERS
0:00 Why quality of earnings unlocks practice value
1:14 From Wall Street to Main Street
2:41 Why sellers should audit their own books first
5:54 Reconciling bank statements to tax returns
12:20 What buyers really want to see
19:31 Fixing past accounting problems before a sale
24:36 Selling with a broker vs on your own