Know what you're buying before your lender tells you
Seller add-backs are a starting point, not a number. We test them against tax returns and bank deposits so you negotiate on earnings that will survive the lender's diligence.
Talk about your deal Which QoE do I need?Reply within one business day · Fixed fee in writing · No obligation
Pre-LOI Earnings Screen
- Three years of P&Ls and tax returns compared
- Seller add-backs tested against returns
- Red-flag memo with a preliminary DSC and SBA eligibility read
A screen, not an SBA QoE. It does not satisfy SOP 50 10 8.1.
Buyer QoE Lite
- EBITDA / SDE bridge in an Excel databook
- Add-back review, revenue and margin trends
- Top-customer concentration
- Bank-deposit-to-revenue check
- Two-page findings memo
SBA 8.1 QoE
- Engaged by your lender, so it satisfies the SOP
- You get access under a non-reliance letter
- Fee can count toward your equity injection
Don't pay for two QoEs
Under SOP 50 10 8.1, an SBA lender can't rely on a QoE you commissioned unless one of the lender's approved vendors reviews it. If you're financing with SBA, the cheapest path is usually one of these:
- Bring your lender in early and have the lender engage the QoE. One report serves both of you.
- Already have a QoE? Ask your lender to have it reviewed. Our QoE Review costs $5,500, not a second full report.
A report prepared by or for the seller can't be used by the lender at all.
What we test that sellers don't
- Deposits vs. reported revenue, month by month
- Owner compensation at market rate for the role you'll fill or hire
- "One-time" expenses that recur every year
- Related-party rent and payroll
- Customer and referral-source concentration
- Deferred maintenance and capex the seller stopped spending
- Cash-basis books converted to accrual
After closing
The first 100 days set the tone: a clean opening balance sheet, a monthly close you trust, a 13-week cash forecast, and lender covenant reporting. Our post-close package covers it for a fixed $18,000, and interim controller coverage is available if the seller's bookkeeper leaves with the seller.
Under LOI or close to it?
Tell us the deal size, the industry, and whether you're using SBA financing. We'll recommend the lightest work that protects you.