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