After LOI Due diligence Quality of earnings Post close, accounting to tax CIM — Confidential Information Memorandum Common in M&A and due diligence. Prepared by the seller (often via an investment banker) to give buyers detailed financial, operational, and strategic info about the business. A QoE analysis may reference the CIM’s numbers but digs deeper to verify them. Key Focus Areas in QoE EBITDA Adjustments Removing one-off gains/losses. Normalizing owner salary to market rates. Revenue Quality Recurring vs. non-recurring. Customer concentration risk. Expense Analysis Identifying discretionary or unusual costs. Working Capital Trends Ensuring enough liquidity post-sale. Accounting Practices Accrual vs. cash basis adjustments. Compliance with GAAP or IFRS. 💡 Example: A business reports $1.5M EBITDA. After QoE adjustments for a one-time lawsuit win (+$300k), a personal boat lease (-$50k), and a temporary pandemic grant (-$150k), the true sustainable EBITDA is $1.1M — which...