M&A Financial Support | 
Quality of Earnings

We look under the hood of the business to verify the true numbers. We provide the Financial Due Diligence, Adjusted EBITDA Analysis, and QoE Reports you need to negotiate with power.

The Gap Between Tax Returns and Deal Value

Most small businesses are run to minimize taxes, not to maximize valuation.
When it comes time to buy or sell, this creates a conflict: Tax returns rarely show the true earning power of a company.

That is where MB Accounting Group steps in.

We bridge the gap between compliance accounting and M&A strategy.
We act as your independent financial architects, translating complex data into a clear, defensible narrative that satisfies investors, banks and brokers.

CRITICAL STEP

The Prerequisite: Quality Numbers

A Quality of Earnings report is only as reliable as the data underneath it. Prerequisite for a good report is quality numbers. That is why our team goes in detail through your books to identify every necessary adjustment—from reclassifying personal expenses to correcting accrual errors.

We create a detailed “Adjustment Schedule.” These changes can be posted by your current bookkeeper under our guidance, or our dedicated team can perform a comprehensive Historical Cleanup to ensure your books are deal-ready.

Explore our Cleanup Services →

PROPRIETARY METHODOLOGY

Beyond the Spreadsheet: Data-Driven Valuation

Standard valuations stop at “EBIDTA x Multiple.” We go deeper. Our proprietary algorithm combines adjusted EBITDA with historic trends and future potential to drive premium valuations.

Quantifying the "Unquantifiable"

Client Retention & Stickiness

We analyze churn rates and contract longevity to prove revenue predictability.

Innovation Capacity

Evaluating IP, proprietary processes, and speed-to-market as valuation multipliers.

Human Capital Quality

Assessing key management dependency and team culture to reduce buyer risk.

Tailored Intelligence for Your Position

Maximize Your Valuation Before Listing

Before you go to market, you need to know exactly what a buyer will see. We perform a “Sell-Side QoE” to audit your own books first. We help you identify and document Add-Backs – legitimate expenses that should be added to your profit calculation.

Keyword Benefit: Identifiying $50k in add-backs can often increase your sale price by $150k+

3.5x

TYPICAL MULTIPLE INCREASE

Verify Before You Buy

The seller’s brochure tells the “best case” story. We dig into the raw data to tell you the real story. We reconcile bank statements to tax returns, verify customer concentration, and ensure the Adjusted EBITDA number is real.

Keyword Benefit: Our analysis is frequently used to negotiate a lower purchase price or secure easier loan approval

RISK VERIFIED

Your Path to a Successful Deal

Whether buying or selling, clarity comes from a structured process.

PHASE 1

Pre-Market Assessment

Reviewing books to spot red flags before a buyer does.

PHASE 2

Cleanup & Adjustments

Executing the "Cleanup" to normalize EBITDA

PHASE 3

Sell-Side QoE Report

Producing the defensive report that justifies your asking price.

PHASE 1

LOI & Data Request

Reviewing books to spot red flags before a buyer does.

PHASE 2

Financial Due Diligence

We verify revenue, margins, and customer concentration.

PHASE 3

Final Valuation & Closing

Adjusting the purchase price based on confirmed Adjusted EBITDA.

What Goes Into Our Analysis?

We peel back the layers of financial statements to uncover the operational reality of business

Revenue Recognition

Are sales recorded in the correct period? We verify accruals vs cash.

Owner Perks

Separating personal expenses (cars, travel) from business costs to find true cash flow.

Working Capital

Analyzing AR, AP, and inventory turnover to ensure liquidity.

Customer Concentration

Risk assessment of top clients to ensure revenue stability.

One-Time Events

Removing costs that won’t happen again (e.g., lawsuits, major repairs).

Recent Transaction Success Stories

Real results from recent engagements where our analysis directly impacted the deal.

BUY-SIDE VERIFICATION

Hidden Capex Revealed

Scenario: A client looking to acquire a service business suspected inflated margins.

Action: We performed a focused QoE analysis and discovered upcoming capital expenditures the seller hid

Result: Price reduction of $150,000

 

SELL-SIDE OPTIMIZATION

Turning a "Loss" into Profit

Scenario: A business owner wanted to exit, but aggressive tax write-offs made the business look unprofitable.

Action: We built a detailed Adjusted EBITDA schedule, documenting $200k in valid add-backs.

Result: Price reduction of $150,000

 

Common Questions About M&A Financials

EBITDA is operational profit. Adjusted EBITDA adds back one-time expenses and owner benefits. This is the number most buyers use to value your business.

Yes. While once used only for large corporate deals, QoE reports are now standard for small business acquisitions ($1M – $10M) to satisfy SBA lenders and investors.

No. We are strictly financial transaction advisors. We work alongside your Business Broker or M&A Attorney to handle the data, so they can focus on the deal.

Typically 2 to 4 weeks, depending on the cleanliness of the historical bookkeeping and the responsiveness of the parties involved.