Below are the questions discussed, along with a high level summary of the answer. Enjoy!

1. Weaver Background

2. Quality of Earnings (QoE): The Basics

Q: What is a QoE and why is it important?
Q: What are core components of a QoE?
Q: How is revenue broken down (monthly vs. annual)?
Q: What if data isn’t easily available?
Q: Can QoE show profitability per customer?
3. Audited Financials vs. QoE

Q: How is a QoE different from audited financials?

4. Common Adjustments in MSP QoEs

Q: What adjustments do you typically make?

5. Key Metrics and Red Flags

Q: What financial red flags do you often find?
Q: How do you handle churn metrics?

6. Net Working Capital (NWC) Essentials

Q: What is NWC and why is it important?
Q: How is NWC calculated?
Q: Common seller misunderstandings?

7. Process & Client Communication

Q: What does a typical engagement look like?
Q: Who participates in diligence calls?
Q: What if info is hard to get?
Q: How do you handle tight deadlines?

8. Seller-Side QoE: Why It Matters

Q: Why should a seller do a QoE report?
Q: When should MSPs do this?

9. Market Trends & Future of Diligence

Q: What trends are you seeing?
Q: Will QoE become fully automated?

10. Final Tips

Q: What’s your advice for MSPs thinking of selling?

🎧 Tune in now to learn how to own your financial due diligence process.

Hosted by Madhur Duggar, Senior M&A Advisor at Excendio Advisors, specializing in MSP M&A, valuations, and exit preparation.

Reach out to Madhur by email or 212.731.4230  

Book an Appointment with Madhur on LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio.com

Reach out to Dan Brumwell on LinkedIn