Anyone analyze QoEs before? Need to come up with questions for due diligence call and looking for some guidance

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Make sure they did everything correctly eg audit everything looks good then questions should be about the cash to accrual adjustments and any and all pro forma and one time adjustments

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Got it! Thank you!

Also just understanding flows in margin changes etc chance to learn as much about the business

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Thank you!

First do a read through of the report. Assuming you’re evaluating a sell-side QoE and you’re doing a business level review vs accounting?

Understand the mgmt, dd, and pf adjustments. Do the add backs make sense based on commentary from the report?

Dig into the trends section (and/or adj. p&l / adj. BS sections, depending on the report). Is commentary descriptive enough? What is still unclear? Is there detail on specific adjustments and how they affect gross margin, revenue, etc directly (vs the EBITDA via)?

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It’s also not complete yet, so just reviewing it in WIP draft. No commentary found just yet so purely just looking at numbers right now.

Your firm doesn’t have some kind of template list of questions in different topic areas? You want to prepare a data book with a separate tab for each key account class (AR, AP, Inventory, Accrued Expenses, Cash, PP&E, Sales, COGS, OPEX, OIE, etc.) and spread monthly financial data for 2-3 years along with %’s to analyze trends and ask questions about unusual outliers. Also asking about certain entries like whether they only record certain entries quarterly or only at year-end (as this will be a QoE adjustment if you’re scope is a TTM period that doesn’t align with the fiscal year).

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Great feedback, thank you. It’s not a final draft form yet so just looking at numbers at the moment.

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