Quality of Earnings and CFO services for consumer products brands
Gross sales mean little in consumer products. We take revenue down to net after trade spend, chargebacks, and marketplace fees, and test inventory value and cost.
Talk about a deal Talk about the businessReply within one business day · Fixed fee in writing · No obligation
Supplement and wellness deals are active
- Q3 2026 saw several large supplement deals, including Procter & Gamble's acquisition of Thorne, as private equity drives consolidation through carve-outs and add-ons. Source
- Tariffs are expected to be the most significant cost factor for supplement companies in 2026. Source
- Since October 1, 2026, SBA 7(a) acquisitions of $3 million or more need an independent Quality of Earnings, and lenders size the loan on its normalized earnings. The rule explained →
We work with lenders and buyers in Utah, Denver, Phoenix, Dallas-Fort Worth, Boise, Las Vegas, and nationwide.
Gross margin after trade spendRevenue by channelSKU velocityInventory turnsRepeat and subscription rateTop-customer %
Retailer deductions and marketplace fees can turn a 60% gross margin into something much smaller.
What buyers and lenders test in a consumer products QoE
Gross to net
Chargebacks, deductions, slotting, returns, and trade promotions taken against revenue.
Inventory
Landed cost, expiry, obsolescence reserves, and counts.
Channel margins
Amazon and marketplace fees, retail, wholesale, and direct-to-consumer, each on its own margin.
Concentration
Dependence on a few retailers or a single co-manufacturer.
Input costs and tariffs
Ingredient and packaging costs and whether price increases keep up.
Trade-promotion accruals
Promotions earned but not yet billed by retailers.
Consumer products QoE: what's included
- Gross-to-net revenue bridge
- Channel and SKU margin analysis
- Trade promotion and deduction review
- Customer and supplier concentration
Consumer products add-ons
| Inventory testing (counts, costing, reserves) | $5,000 |
| Each additional legal entity | $2,500 |
Fees by deal size
| Purchase price / EV | QoE fee |
|---|---|
| Under $3M | $11,500 (sell-side $9,000) |
| $3M to $4M | $12,500 |
| $4M to $5M | $14,500 |
| $5M to $10M | $19,500 |
| $10M to $15M | from $26,500 |
| Lower middle market & PE add-ons | typically $25,000 to $70,000 |
Larger deals are quoted from revenue, entities, inventory, and report format. Pre-LOI earnings screen $1,950. All fees →
Before an LOI, run the seller's numbers through our free add-back sanity check. Terms like SDE, cash proof, and DSCR are explained in the QoE glossary.
Where consumer brands lose money
- Inventory carried at cost without freight and duties
- Retailer deductions netted against payments and never reconciled
- Cash tied up in slow-moving SKUs
- Marketplace fees growing faster than sales
Priced for your industry
Brands need landed-cost inventory and channel profitability before they scale or raise capital.
Start with a $2,500 finance diagnostic, credited to your first month. Interim CFO or controller coverage is also available, part time from $10,500/mo or full time.
Books & close
- Monthly bookkeeping and reconciliations
- Accrual close by business day 10
- Monthly financial package
- Quarterly review call
Controller
- Everything in Books & close
- KPI dashboard for your industry
- Payroll, AP, and sales tax oversight
- Quarterly 13-week cash forecast
- Monthly review call
CFO
- Everything in Controller
- Landed-cost inventory accounting
- Channel and SKU profitability
- Deduction and chargeback recovery
- Cash and inventory forecasting
- Monthly CFO meeting
Fixed monthly fees, month to month after three months. Day-to-day bookkeeping may be done by trained staff working to our checklists, always with CPA review and sign-off by Edwin van Stam. Talk about the right package →
Consumer products engagements Edwin has led
- QoE for a natural consumer products brand
- Interim controller for a national outdoor gear and apparel brand
- Interim controller for a premium e-commerce gifting brand
- Financial work for an overland vehicle manufacturer
- Due diligence scoping for a nutraceutical company
Includes engagements Edwin performed with prior and affiliated firms. Client names are confidential.
Consumer products questions
Does an SBA loan for this kind of acquisition need a QoE?
Under SBA SOP 50 10 8.1, a 7(a) change-of-ownership loan with a business purchase price of $3 million or more needs a Quality of Earnings, and the lender sizes the loan on the QoE's normalized earnings. Below $3 million many lenders still ask for one. Check your deal →
Why do buyers focus on gross-to-net?
Because retailer deductions, promotions, and marketplace fees are where consumer brand earnings are most often overstated.
Is inventory testing included?
Inventory testing is an add-on ($5,000), because it involves counts, costing, and reserve analysis beyond the standard scope.
Buying, selling, or running a consumer brand?
Buying, financing, or selling? Start with a QoE conversation. Running the business? Start with a finance diagnostic.