Quality of Earnings Software for Buyer and Seller Readiness
PFI delivers structured quality of earnings analysis — normalized EBITDA, revenue quality, working capital, and transaction evidence — for companies preparing for a transaction, managing a sale process, or evaluating an acquisition.
A quality of earnings analysis is the foundation of any credible M&A transaction. It establishes what the business actually earns — after normalizing for non-recurring items, owner adjustments, and accounting choices — and gives buyers and sellers a defensible basis for valuation and deal structure.
PFI structures quality of earnings analysis around transaction evidence. Every normalization is documented. Every revenue quality finding is traced to the customer, the product, or the contract. Every working capital conclusion is supported by the underlying A/R, A/P, and inventory data. The result is a QoE that holds up under scrutiny.
Quality of earnings software in PFI is part of the Transaction Intelligence module — which also covers financial due diligence, M&A transaction readiness, and exit preparation for private equity, strategic buyers, and owner-operated businesses.
The Quality of Earnings Path
From reported earnings to a defensible adjusted EBITDA
Income statement and balance sheet as reported
Non-recurring items, owner compensation, one-time charges
Defensible normalized earnings with documented support
Recurring vs. non-recurring, customer concentration, contract sustainability
Normalized working capital and purchase price adjustment basis
Source-level documentation for every finding and adjustment
Findings organized for buyer presentation or seller preparation
What makes a QoE defensible
A quality of earnings analysis is only as strong as its documentation. PFI connects every normalization adjustment to the underlying transactions — so when a buyer's advisor challenges a number, the evidence is already organized and traceable.
For sellers, that means fewer surprises in the diligence process. For buyers, it means a QoE they can rely on rather than re-do.
Core Capabilities
Quality of earnings analysis built for transactions
EBITDA Normalization
Identify and document non-recurring items, owner compensation adjustments, one-time charges, and accounting policy differences to arrive at a defensible adjusted EBITDA.
Revenue Quality Analysis
Assess revenue by customer, product, channel, and contract type. Identify recurring vs. non-recurring revenue, concentration risk, and the sustainability of the revenue base.
Working Capital Peg
Calculate normalized working capital and the appropriate purchase price adjustment peg — a critical and frequently contested component of M&A deal structure.
Trend Analysis
Analyze financial performance across multiple periods to identify trends, seasonality, and structural changes that affect the quality and sustainability of earnings.
Transaction Evidence
Every normalization and finding is connected to the underlying transaction evidence — so the QoE is documented at the source level, not just the summary level.
Sell-Side Preparation
Identify issues before the buyer's advisor does. PFI helps sellers prepare a clean, evidence-backed financial picture that reduces surprises and accelerates the diligence process.
Who Uses QoE Software
Quality of earnings for every side of the transaction
Private Equity Buyers
Validate management's earnings claims, identify risks before closing, and establish a defensible basis for valuation and deal structure.
Strategic Acquirers
Assess the quality and sustainability of target earnings before committing to a purchase price — with transaction-level evidence supporting every conclusion.
Owners Preparing for Exit
Understand what a buyer's QoE will find before the process starts. Normalize earnings, organize documentation, and present a clean financial picture.
M&A Advisors
Structure quality of earnings analysis efficiently for sell-side or buy-side engagements — with evidence-backed findings and documentation built into the workflow.
See quality of earnings software built for transactions
PFI delivers normalized EBITDA, revenue quality analysis, and working capital peg calculations — with transaction evidence supporting every finding. Request a walkthrough.