Gain a better understanding of what a quality of earnings report means and who needs one.
This course will provide you with an understanding of the process of conducting a quality of earnings engagement and how to conduct this analysis. You will learn how to identify add-backs to earnings, explain financial trends and walk EBITDA forward. You will learn how to use techniques, including trend analysis, common-size analysis, and benchmark analysis, to measure the quality of earnings.
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Why Lorman?
Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Process of Quality of Earnings Engagement
- The Focus on EBITDA as a Measure of Earnings (Earnings Before Interest, Taxes, Depreciation, and Amortization)
- Quality of Earnings From the Buyer's Perspective
- Quality of Earnings From the Seller's Perspective
EBITDA Add-Backs
- Owner Perquisites - What Is a Perk vs. Fair Compensation?
- Recurring vs. Nonrecurring Income and Expenses
- Normalizing Start-Up Operations
EBITDA Walk Forward
- Identify Annual Variances That Impact EBITDA
- Learn How to Walk EBITDA Forward From One Year to the Next
- How to Present the Walk Forward in a Meaningful Context
Benchmark Analysis
- Comparison of Recent Financial Trends to Industry Benchmarks
- Sources of Benchmarks
- How to Identify Valid Reasons for Variances and How to Present Them
Trend, Common Size, and Ratio Analysis
- Understand How Annual Trends Reveal Relationships Between Certain Expenses and Revenue
- Understand How to Spot Margin Growth and Attrition
- Understand How Product Mix Impacts the Quality of Earnings
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Why Lorman?
Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on January 19, 2022.
Call 1-866-352-9540 for further credit information.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
MP3 Download
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
More Program Information
Why Lorman?
Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Michele Avery, CPA/ABV, CVA, MAFF
LaPorte CPAs & Business Advisors
- Director of Forensic and Valuation Services
- Practice is focused solely on business valuation, including transactions of business interests, litigation issues, and estate matters
- Regular speaker on business valuation and business transactions for CLE and CPE for attorneys and accountants
- AICPA Forensic and Valuation Services Section, Louisiana Society of CPAs - Forensic and Valuation Services Committee
- M.B.A. degree, Louisiana State University; B.A. degree, University of Wisconsin - Superior
More Program Information
Why Lorman?
Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
All of your training, right here at Lorman.
Pay once and get a full year of unlimited training in any format, any time!
- OnDemand Courses
- Live Webinars
- MP3 Downloads
- Course Manuals
- Executive Reports
- White Papers and Articles
Additional benefits include:
- State Specific Credit Tracker
- All-Access Pass Course Concierge
Questions? Call 877-296-2169 to speak with a real person.
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$699/year
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