Importance of Managing Organized Quality of Earnings in M&A
An M&A Science Podcast
Hosted by Kison Patel
Try to put yourself in the buyer’s shoes. Then try to put yourself in the seller’s shoes. And then try to put yourself in the advisor’s shoes as well. In each position, remain objective.
On this episode
Andrew Jordan, a Director at Cohen & Company, shares his knowledge on M&A and quality of earnings, and specifically, how they correlate with each other.
Previously, Jordan was a Principal at Riveron Consulting, where he provided transaction advisory services and had his hand in M&A for the last 8 years.
In this podcast, Jordan discusses why we are seeing more and more sellers, rather than buyers, seeking their own quality of earnings prior to initiating a deal.
0:00 – 0:47 Summary of Andrew’s background
0:48 – 5:44 Advantages to sellers doing Quality of Earnings (Q of E) analysis
5:45 – 6:51 When to get buyers involved in process
6:52 – 9:51 Biggest challenge from financial accounting due diligence process
9:52 – 10:39 Particular strategies to overcome data challenges
10:40 – 19:19 Interesting and extreme expense item discoveries
19:20 – 25:38 Evaluating Q of E adjustments
25:39 – 26:30 How see diligence process evolving
26:31 – 27:27 Assuring proper controls, both in and outside of Q of E analysis
27:28 – 33:19 Key lessons learned
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