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)
