Quality of Earnings (QoE)

MCA Financial Group delivers independent Quality of Earnings analyses to help buyers, sellers, and lenders evaluate a company’s underlying financial health. Our work identifies non-recurring or discretionary items, assesses the sustainability of earnings, and provides a clear picture of working capital requirements. MCA’s approach gives stakeholders the insight and confidence needed to make well-informed decisions and negotiate from a position of strength.

 

MCA’s expertise includes these Quality of Earnings core services:

 

Sell-Side & Buy-Side QoE Reporting

Whether representing sellers or buyers, we deliver tailored QoE reports that highlight the true earnings power of a business and uncover financial risks or opportunities before a transaction closes.

EBITDA Normalization & Adjustments

We adjust EBITDA to remove one-time, non-operational, or discretionary expenses, creating a more accurate and consistent measure of a company’s ongoing profitability.

Working Capital Analysis

Our team evaluates working capital trends and needs to ensure buyers and sellers understand baseline requirements, helping avoid surprises and support optimal deal structuring.

Revenue & Margin Trend Analysis

We assess historical and current revenue patterns and profit margins to identify growth drivers, cost pressures, or inconsistencies that may affect future earnings.

Review of Accounting Policies & Internal Controls

We examine the company’s accounting practices and internal systems to identify risks, ensure compliance, and evaluate the reliability of financial reporting.

SUCCESS STORIES

Review just a few of our recent Lender Advisory Services success stories. We are happy to discuss any similar needs you may have.
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TELECOMMUNCIATIONS

Cable TV

Valuations and Opinions to Support Share Repurchase Program

Global Designer and Manufacturer of Equipment Supplied to Telephone and Cable Network Operators: California

MCA was retained by management to perform a valuation of the company, in conjunction with a buy-back plan from minority shareholders, of this formerly publicly traded firm. MCA completed the valuation and prepared a valuation report that was distributed to the minority shareholders along with a tender offer. Management was successful in completing the repurchase of minority shares at a defensible value, which was mutually beneficial for the company and the minority shareholders.

FROM MORRIE AARON • MCA FOUNDER

“You have our personal commitment that MCA will provide the highest quality work to its clients in a timely manner. Confidentiality and trust are important ingredients in any business relationship and MCA is committed to these values.”
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OUR MCA PROFESSIONALS

MCA Financial Group provides senior-level teams that specialize in four practice areas to meet your financial and business needs. Each team is directed by an accomplished Senior Managing Director who possesses the requisite frontline experience necessary to provide personalized attention.
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