Sample SBA Quality of Earnings Report

See How BVA Tests Earnings for SBA Acquisition Underwriting

Review a representative BVA Quality of Earnings analysis designed to show how reported and seller-adjusted earnings are tested for SBA acquisition underwriting. This fictional sample demonstrates three-period Cash Proof, add-back testing, lender-use EBITDA, revenue quality, customer concentration, working capital, A/R and A/P analysis, maintenance CapEx, and a lender-focused findings log.
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Sample SBA Quality of Earnings Report by Business Valuation Advisors

What This SBA Quality of Earnings Sample Demonstrates

Representative Lender-Focused Financial Due Diligence

This representative SBA Quality of Earnings sample illustrates how Business Valuation Advisors evaluates the reliability and sustainability of historical earnings for acquisition underwriting.

The report demonstrates how BVA reconciles reported results to underlying financial records, tests seller-proposed adjustments, develops lender-use EBITDA, evaluates operating cash activity, and identifies transaction risks that may affect debt-service support and post-closing liquidity.

What the sample includes:

• Three-period Cash Proof and bank-to-financial reconciliation

• Reported EBITDA of $628,000

• Seller-adjusted EBITDA of $973,000

• Accepted, rejected, and negative earnings adjustments

• $742,000 illustrative lender-use EBITDA

• Revenue quality and customer concentration analysis

• Working-capital and minimum-cash requirements

• Accounts receivable and accounts payable review

• Maintenance and growth capital expenditures

• Balance-sheet and debt-like item analysis

• Debt-service and transaction support considerations

• Lender findings log with severity and dollar impact

The company, transaction, financial information, and conclusions shown in this report are fictional and were created solely to demonstrate BVA’s analytical approach and reporting format. This sample does not relate to an actual client or transaction and does not constitute SBA approval, endorsement, or a guarantee of governmental or lender acceptance.

Download the Sample SBA Quality of Earnings Report (PDF)

Preparing for an SBA Quality of Earnings Review? Get the Free Readiness Toolkit

Organize the records and diligence items that may matter before Cash Proof, add-back testing, working-capital analysis, lender-use EBITDA review, or broader Quality of Earnings work begins. BVA’s free SBA Valuation & Quality of Earnings Readiness Toolkit includes a 14-page preparation guide and companion Readiness Tracker in Excel and Google Sheets.
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Discuss Your SBA Valuation or Quality of Earnings Engagement

Whether you are an SBA lender, acquisition buyer, business broker, or transaction advisor, BVA can help define the appropriate valuation and financial due diligence scope for the transaction. Schedule a confidential discussion to review the acquisition, lender requirements, available financial records, and expected deliverables.

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