Quality of Earnings: What Buyers Miss Most Often
Due DiligenceQuality of Earnings
A dedicated due diligence advisory built for the middle market.
Buyers, sellers, and private equity sponsors trust Clearscope Diligence to uncover what matters before a transaction closes. We have built a fully integrated range of diligence services tailored to the pace and scale of middle market deals — not a Big Four engagement letter, and not a generalist accountant moonlighting on M&A.
About Us →Our capabilities have been specifically built to assist middle market buyers and sellers through every stage of the transaction, from early scoping through post-close true-up.
Independent verification of normalized EBITDA, working capital trends, and revenue quality — the diligence work most likely to affect final purchase price.
Financial Diligence Services →Assessment of operating processes, key-person risk, customer concentration, and market position that could affect performance after close.
Operational Diligence Services →Tax structuring review ahead of close, plus working capital true-up support and integration advisory during the critical first 100 days.
Post-Close Services →Diligence findings read differently by industry. Our teams bring sector-specific benchmarks to every engagement.
Recurring revenue quality, customer contracts, and key-person risk in services businesses.
Working capital cycles, backlog quality, and customer concentration in industrial deals.
Payor mix, reimbursement risk, and regulatory diligence for healthcare platforms.
Inventory quality, channel concentration, and margin normalization for consumer brands.
Backlog analysis, bonding capacity, and project-level margin review.
Revenue recognition, compliance exposure, and unit economics diligence.
“Clearscope found a working capital issue in week two that saved us from overpaying by nearly $400K. That alone paid for the engagement many times over.”
Marcus Webb, Principal, Redline Capital Partners
“They ran the sell-side QoE before we went to market, so there were no surprises during buyer diligence. The deal closed on the original timeline.”
Dana Ferris, Owner, Coastal Behavioral Health
“First-time buyer, and Clearscope walked me through exactly what the operational risks meant in plain terms. I closed with confidence.”
Tomas Reyes, Searcher & Buyer