Quality of Earnings (QofE) Analysis.
Identifying true, sustainable earnings power beyond the headline numbers.
What We Do.
Our analysis moves beyond audit-compliance to institutional-grade intelligence. We peel back layers of accounting noise to reveal the operational reality of the target.
EBITDA Bridge
A rigorous bridge from reported net income to adjusted EBITDA, isolating non-recurring, one-time, and pro-forma adjustments.
Revenue Quality
Analyzing customer concentration, recurring revenue churn, and the sustainability of pricing power across market cycles.
Related-party Normalization
Identifying and adjusting for transactions with affiliates that deviate from market rates or arm's-length standards.
EBITDA-to-cash Conversion
Validating that earnings are translating into actual liquid cash flow, adjusted for working capital and CapEx requirements.
Who It's For.
PE Investors
Mitigating buy-side risk through uncompromising verification of the target’s financial health and projected exit value.
Lenders
Ensuring debt-service coverage ratios are based on normalized, sustainable cash flows rather than creative accounting.
Strategic Acquirers
Evaluating synergy potential against a clean baseline of the target’s stand-alone operational performance.
From Rs.142 Cr to Rs.89 Cr EBITDA.
The Intervention
During a buy-side mandate for a mid-market manufacturing firm, our team identified that 30% of the reported EBITDA was driven by non-recurring government pandemic subsidies disguised as operational grants.
The Discovery
Further normalization revealed substantial related-party charges for 'technical consultancy' that were significantly below market value.
Latest Intelligence.
View All Publications
Report // Deep DiveEBITDA Is a Lie Sometimes: A Guide to QofE in Indian PE
Examining the nuance of earnings quality within the Indian regulatory framework and private equity ecosystem.
Article // TaxonomyNormalization in Volatile Markets
How to adjust for outlier years without losing the trendline of core operational efficiency.
Case Study // TechSaaS Revenue: Recurring vs. Re-occurring
The critical difference between contract-based ARR and high-churn transactional revenue streams.
White Paper // Q1 2026The 2026 Valuation Handbook
A comprehensive guide for analysts on bridging the gap between audit financials and investment-ready data.