Whitepaper Release: Assessing Earnings Quality in the Investment Management Industry

Transactions Valuation

For this week’s post we’re introducing our whitepaper on quality of earnings (QofE) analysis in the investment management industry.

A thorough QofE analysis plays an important role in evaluating the performance of RIAs. It transcends traditional financial assessments, providing a view of a company’s sustainable earning power by adjusting for nonrecurring items and discretionary expenses and analyzing revenue and cost structures.

For RIA buyers and sellers, commissioning a QofE report is an essential element of the due diligence process.  In essence, a well-executed QofE analysis not only reveals why a firm is profitable but also assesses the likelihood of maintaining and enhancing that profitability after the transaction.  This comprehensive approach ensures that both buyers and sellers make well-informed, strategic decisions in the RIA industry.

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WHITEPAPER

Assessing Earnings Quality in the Investment Management Industry

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