Quality of Earnings Worksheet

Overview

Buyers will scrutinize your EBITDA. This worksheet helps you proactively identify, document, and defend legitimate adjustments before the due diligence process begins.

What Is Included

• Common add-back categories with examples
• Documentation checklist for each adjustment
• Defensibility scoring to prioritize strong vs. weak adjustments
• Buyer objection preparation with counter-arguments
• Summary dashboard showing adjusted vs. reported EBITDA

Who Should Use This

• Owners preparing financials for sale
• Those working with QoE firms who need to organize source documents
• Business owners wanting to understand their “true” EBITDA
• Anyone anticipating buyer scrutiny of their financials

How to Use

1. List all potential adjustments using the category prompts
2. Gather supporting documentation for each item
3. Score defensibility based on buyer acceptance likelihood
4. Calculate adjusted EBITDA with conservative and aggressive views
5. Prepare narratives for items likely to be questioned