Quality of Earnings · Financial Due Diligence
Quality of Earnings Reports & Financial Due Diligence for Business Acquisitions
Thorough, pragmatic Buy-Side Due Diligence that helps you understand the financial story behind the numbers — before you close.
- 100+ Quality of Earnings & Financial Due Diligence projects
- Specialists in $1M–$15M business acquisitions
- Trusted by search funds, SBA buyers & investors
- Typically 20–50% more affordable than large regional CPA firms
Illustrative — every engagement includes the Appletree Acquisition Scorecard
Quality of Earnings & Financial Due Diligence Projects
$1M-$15M
Typical Acquisition Size We Specialize In
More Affordable Than Large Regional CPA Firms
Real Acquisition Experience
CPAs Who Have Bought Businesses Themselves
Why Appletree
Why Business Buyers Choose Appletree
100+ Quality of Earnings and Financial Due Diligence engagements — purpose-built for the lower middle market, not corporate M&A.
100+ QOE & Due Diligence Projects
Real pattern recognition built across more than 100 Quality of Earnings and Financial Due Diligence engagements.
$1M–$15M Acquisition Specialists
Focused on the lower middle market — SBA deals, search funds, and acquisition entrepreneurs at the size that matters to you.
Search Funds, SBA Buyers & Entrepreneurs
Acquisition buyers across the country rely on Appletree for independent Buy-Side Due Diligence.
Real Acquisition Experience
Our CPAs have personally bought businesses — we know what buyers actually need, not just what looks good on paper.
Thorough, Diligent & Pragmatic
Practical, buyer-focused findings — not dense technical reports that need a second interpreter.
20–50% More Affordable
Institutional-quality QOE Analysis at a fee that fits real acquisition budgets — typically well below large regional CPA firms.
Traditional CPA Firms
-
Generic, templated reports
-
Built for large corporate transactions
-
Higher fees, less accessible
-
Limited real acquisition experience
-
Technical reports that are hard to interpret
Traditional CPA Firms
-
100+ Quality of Earnings & Financial Due Diligence engagements
-
Designed for $1M–$15M acquisitions
-
CPAs who have personally acquired businesses
-
Clear, actionable reports you can actually use
-
Typically 20–50% more affordable than large regional firms
Education
What Is a Quality of Earnings Report?
A Quality of Earnings Report — also called a QOE Report or Financial Due Diligence analysis — helps buyers understand whether a company's reported earnings reflect its true operating performance before completing an acquisition.
In short, it answers one question: are the numbers real — and are they sustainable?
A thorough Quality of Earnings Analysis gives buyers, lenders, and investors the clarity to close with confidence — or walk away before a costly mistake.
Revenue Quality
Is revenue recurring, reliable, and accurately reported?
EBITDA Adjustments
Which add-backs and normalizations are legitimate?
Working Capital
What capital is actually needed to run the business?
Cash Flow
Is the business generating real, consistent free cash flow?
Customer & Vendor Risk
Concentration risk and single-customer dependency.
Financial Trends
Is the business growing, stable, or declining — and why?
Debt-Like Items
Liabilities or obligations that should reduce the purchase price.
Sample Report
See Exactly What You'll Receive
Our Quality of Earnings Reports are built to be clear, actionable, and buyer-ready — not dense with accounting jargon. Every engagement includes our proprietary Acquisition Scorecard: a plain-English summary of exactly what we found and what it means for your decision.
- Easy-to-read executive summary
- EBITDA bridge and adjustments
- Revenue and cash flow quality assessment
- Working capital and debt-like item analysis
- Appletree Acquisition Scorecard — Page 3
Who We Help
Is This Right for Your Acquisition?
Appletree's Quality of Earnings and Financial Due Diligence work is built for buyers across the lower middle market.
Search Funds
SBA Buyers
Acquisition Entrepreneurs
Private Equity
Independent Sponsors
Strategic Buyers
Business Buyers
Lenders & Investors
Appletree specializes in acquisitions with a purchase price typically between $1M and $15M — the sweet spot for search funds, SBA buyers, and acquisition entrepreneurs nationwide.
Our Process
Our Financial Due Diligence Process
A clear, defined process from first call to final report — you'll always know exactly where things stand.
Initial Consultation
We learn about your acquisition, deal timeline, and what you need from the engagement.
Document Request
We send a structured request list to gather the seller's financial records.
QOE Analysis
Our CPAs dig into revenue, EBITDA, working capital, cash flow, and risk factors.
Report & Scorecard
We deliver your QOE Report and the Appletree Acquisition Scorecard with clear findings.
Findings Review
We walk through the report, answer questions, and give practical recommendations.
Community
Trusted Across the Acquisition Community
Appletree works alongside the most respected communities in small business M&A.
Acquisition Lab
Searchfund Coalition
SMBootcamp
SMBDealhunters
Acquiring Minds
Acquisitions Anonymous
Inspired or Acquired
Testimonials
Here’s What Our Clients Have to Say
"They are incredibly on top of things and always available for anything and everything! Appletree Business Services has simplified the client's tax processes, meeting expectations. The team delivers on time and is always available for any concerns. Communication is efficient via virtual meetings and email. They have a personal touch that helps with all accounting needs.”
Jason Pak VP, Achieve Fitness Center, Inc."I loved that they have been through the business-buying process and trusted their experience in that realm. Thanks to Appletree Business Services' work, the client found information regarding the potential financial risk of buying the business and ultimately decided not to acquire it. The team was responsive and delivered on time. Their experience in the business-buying process was impressive.”
Bryan Tibbitts Searcher, TibbCo Ventures LLC"If you're looking for a reliable and professional accounting firm, we highly recommend Appletree Business Services. Appletree Business Services has provided the client with financial clarity, improved efficiencies, and accurate payroll. The team is responsive, knowledgeable, and understanding of the industry. The client has been impressed with the team's responsiveness and expertise throughout the engagement.”
Maribel Olvera Owner, Boston Budget Plumbing. Heating and Cooling"They deliver on time. Appletree Business Services has successfully cleaned the client's books according to their requirements. So far, the team has delivered on time, communicated through virtual meetings, and shown an alignment of values with the client. Overall, it has been a satisfying partnership.”
Gabriel Gorelik COO, United settlement"They were very responsive during the transition and beyond and made me feel very comfortable. Appletree Business Services has successfully transitioned the client's internal financial processes to their system on time. The team has been highly responsive and competent throughout the workflow, easing the transition. They deeply understand the client's needs to keep their business running.”
Ian McKenna Owner, InTech Scientific"The team has been very helpful. Appletree Business Services' work has helped the client update and upgrade their Quickbooks platform and optimize their processes. Appletree Business Services' team is responsive, punctual, and committed to the project's success. The client also praised the team's ability to fully explain every step of the process.”
McKenzie Reed President, CLN of South Florida, Inc."I'm impressed with their ability to understand and organize books while doing everything remotely. So far, the client has been doing a great job of meeting the client's needs. Appletree Business Services works in an organized manner, enabling them to complete tasks on time and with accuracy. Moreover, the team has impressed the client with their communication skills.”
Rob DeVerna Executive Director, Rye Venue Management"They are impeccably reliable and always reply to requests or questions quickly. The client is delighted with Appletree Business Services' work. The team constantly looks for new ways to help with financial aspects and offers insights for better decision-making. They are reliable, responsive, and endlessly helpful. Their genuine care for the company is impressive.”
Nicki Krawczyk President, Nicki K Media, Inc"Marlo at Appletree is great to work with. Quick work with confirmations!”
Henry Gaumont Henry Gaumont"I've been working with Appletree Business Services for almost a year now, and I couldn't be happier with the service. Nehemiah Barr, our accountant, is exceptional. He's not only knowledgeable and detail-oriented, but he also takes the time to explain complex financial matters in a way that's easy to understand. I highly recommend them to any business looking for reliable and expert accounting support.”
Arturo Ramírez Arturo Ramírez"Working with Appletree Account has been a great experience. Nehemiah has been diligent and exudes professionalism. As a small business owner it has been a game changer and has freed up time to focus on my business. 100% Recommend.”
Eamon Sullivan Eamon Sullivan"Absolutely amazing experience with Appletree Business Services! As the owner of 817 Coffee, a small coffee roastery, I can confidently say that Appletree has been a game-changer for us. Nehemiah, our Accounting and Tax Manager, has been incredibly responsive and supportive, making the financial side of our business stress-free. His expertise and guidance have allowed us to focus on our passion - roasting the best coffee in the world. We are so grateful for Nehemiah and the entire team at Appletree for their dedication to making our lives easier. Highly recommend their services to any small business owner!”
Johann Joseph 817 Coffee"I've been working with Nehemiah Barr and his team at Appletree for the better part of a year. They handle 2 different businesses of mine and have been a tremendous help. From cleaning up the books and flushing out mistakes from previous accountants to implementing new processes for the future he has been an invaluable asset. I would highly recommend him to others!”
Christopher Janeway Christopher Janeway"We highly recommend Appletree. They allow us to do what we do best in our business. They are extremely responsive, helpful and respectful!We are happy to continue our services with them that includes book keeping, payroll, and tax prep throughout the year. All bundled into a simple monthly payment. Thank you appletree for all of your hardwork!”
Grateful Electric LLC Grateful Electric LLC"Appletree is not your standard accounting firm. They provide me with insights into my business numbers, and empower me with financial knowledge, fueling the sustained growth of my business. Having someone to advise us has been invaluable.”
Casey Cheshire Cheshire Impact LLC“We had no idea about all the problems we had until Appletree applied the Business Financial Confidence Map to our practice, guiding us through many compliance issues, and giving us peace of mind.”
Dr. John Kosinski East Coast Chiropractic LLC“For over 15 years, Appletree has provided exceptional accounting services and business advice. Knowing that I don’t have to think about taxes and compliance allows me to concentrate on running the business. It’s a huge relief never having to worry.”
Karen Ferrandino Freedom Dental Arts LLCI look at my books and all my accounts are organized. I love having it all in one spot. You guys help me sleep.
Michael D Smith The Weatherize Guyz, LLC, Derry, NHWe made so many changes for the positive since we hired Appletree. I feel like we finally have somebody on our side, a whole team behind us.
Karen Fenderson Creative Little Angels, Londonderry, NHIt’s comforting to know we have someone outside of our office scrutinizing our trends and bringing them to our attention. It’s easy to get caught up in the day to day letting the global issues slip by.
Christian Larocca Progressive Electrical Services, Lee, NHAppletree spent a lot of time learning how we work. They really understand us, and we found they are very easy to work with. I love how they put it all together as one package.
Michael Rioux Grass Gobblers Lawn Care & Landscaping, Londonderry, NHAppletree has helped me navigate and resolve multiple tax-related issues for my small business. Without them, I’d still be going blind on paperwork and research, and my issues would not yet be resolved.
Todd Campbell E. B. Capital Markets LLC, Durham, NHWith accurate, easy to understand monthly reports that give us accountability & a reminder to “check the oil” in our fiscal machine, Appletree has proven to be one of the best financial decisions made in twelve years of business!
Christian Larocca Progressive Electrical Services, Lee, NHAppletree helped with the purchase of our practice, making sure we had no disruption to our patients or insurance providers’. Their business financial confidence map helped us pay the minimum in taxes and their payroll allows us to focus on billing.
Joshua Dion Integrated Pain Care LLC, Bedford, NHWe had no idea about all the problems we had until Appletree applied the Business Financial Confidence Map to our practice, guiding us through many compliance issues, and giving us peace of mind.
Casey Cheshire East Coast Chiropractic LLC, Manchester NHWe’ve used Appletree for the past decade and have seen our sales increase 100% over that time. Their experience & knowledge has also saved us thousands of dollars in tax credits.
Dana Robinson Robinson Precision Tool Corporation, Hudson, NHSteve has done all of my accounting work since 1995. I’ve benefited from his help and guidance through the years in virtually every major financial decision that I’ve made. His wisdom and experience is invaluable.
Kevin Hallenbeck Sandler Sales Training, Bedford, NHIt has gone extremely well and I continue to use their services on an ongoing basis as an integral part of my business. I get more than my money’s worth.
Craig Bailey Customer Centricity, Inc, Hudson, NHOver the past 20 years, They find the right questions to ask that help lead us to make the right choices…. Their system has made it easy for my husband and myself to continue doing what we like to do best—our work.
Jeanne Hall, NHLMT, NCMMT Jeanne Hall Therapy, Derry, NH
FAQ
Frequently Asked Questions
A Quality of Earnings Report (QOE Report) is a Financial Due Diligence analysis that examines whether a company's reported earnings accurately reflect its true operating performance. It reviews revenue quality, EBITDA adjustments, working capital, cash flow, and financial risks — helping buyers make informed acquisition decisions.
Financial Due Diligence is the process of independently verifying the financial health of a business before completing an acquisition. It typically includes a Quality of Earnings analysis, working capital review, cash flow assessment, and identification of risks or hidden liabilities.
Appletree's QOE Analysis includes revenue quality, EBITDA adjustments, working capital analysis, cash flow, customer and vendor concentration review, financial trend analysis, debt-like items, a management findings meeting, and our proprietary Acquisition Scorecard.
Typically once you have a signed Letter of Intent (LOI) and are in the due diligence phase. For SBA-financed deals, your lender will often require a formal Financial Due Diligence report before approving the loan.
Most Appletree QOE engagements are completed within 2–4 weeks, depending on business complexity and document availability. Contact us to discuss your specific timeline.
Yes. Buy-Side Due Diligence is our primary focus — we work on behalf of buyers to independently verify a target's financials before closing. We also provide Sell-Side Due Diligence (Sell-Side QOE) to help sellers prepare their financials for buyer scrutiny before going to market.
We specialize in lower middle market acquisitions, typically with a purchase price between $1M and $15M — the sweet spot for search funds, SBA buyers, acquisition entrepreneurs, and independent sponsors. We work with buyers nationwide.
Large CPA firms build QOE reports for corporate M&A — expensive, over-engineered, and built for bigger deals. Appletree specializes in $1M–$15M acquisitions, our CPAs have personally bought businesses, and we're typically 20–50% more affordable than large regional firms.
Ready to Move Forward With Confidence?
Whether you're evaluating your first acquisition or adding another business to your portfolio, our team is ready to help you understand the financial story behind the numbers — before you close.