Advanced

Quality of Earnings (QoE) adjustments schedule and narrative

Builds a QoE bridge from reported EBITDA to adjusted EBITDA and drafts the narrative support. Useful for M&A diligence teams and buyer decision-making.

Prepare a Quality of Earnings (QoE) analysis for {target_name} for {periods_covered}.

Inputs:
- Income statement detail: {income_statement_detail}
- Management add-backs list: {management_addbacks}
- Nonrecurring/unusual items evidence: {nonrecurring_evidence}
- Accounting policy notes: {accounting_policies}
- Revenue and margin by segment: {segment_data}

Output:
1) EBITDA bridge table: Reported → adjustments → Adjusted EBITDA (with evidence references).
2) Adjustment detail table: item, amount, recurring? (Y/N), buyer view, support needed.
3) Narrative summary (key drivers, risks, sustainability).
4) Follow-up data requests and questions.

Be skeptical and evidence-driven.

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