Verify Business Earnings in an M&A Transaction with Patrick O'Connell

In this episode of the M&A Launchpad Podcast, hosts Feras Moussa and Casey Minshew welcome special guest Patrick O'Connell. Today we are focusing on the role of a quality of earnings (QoE) in the M&A process. Patrick discusses the importance of conducting a quality of earnings analysis when transacting. The QoE is used to verify what the seller has told you about the business verses what is reported in the business. The QoE is a great financial tool to establish facts, rather than opinions, for valuing a business acquisition.

Patrick looks to empower entrepreneurs to buy or sell lower middle market deals. We explore his role in evaluating business financial health and ensuring smooth transactions. The conversation covers practical insights on managing buyer-seller relationships, emphasizing working capital and negotiation strategies. The episode also highlights the importance of experienced advisory roles in acquisitions.

In this podcast episode, we discuss:

• What is a Quality of Earnings?
• How to Verify Business Earnings
• Importance of Mediating Buyers and Sellers

You can connect with Patrick by LinkedIn or X: “SMB Deal Guy”
Patrick’s Firm: Quality of earnings service provider (oconnelladvisorygroup.com)

00:00 Verify Business Earnings in an M&A Transaction with Patrick O'Connell
01:59 Introducing Patrick O'Connell
02:05 Patrick's Background and Expertise
04:05 Deep Dive into Quality of Earnings
12:49 Working Capital and Deal Negotiations
21:18 Common Pitfalls in Business Acquisitions
23:49 Rocket Round
27:20 Conclusion and Contact Information


Additional Resources:
• Access our archive of video interviews on YouTube
• Get in touch with show hosts Casey Minshew and Feras Moussa at - [email protected]
• Looking to invest in M&A opportunities or partner with an advisor to acquire, scale or sell your business? Visit Equity-Launchpad.com

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