A well-researched and developed QOE report goes beyond an accounting review of the financial statements. It looks at whether an enterprise and proposed transaction have the necessary financial, human, capital, and other resources to execute the strategic plan.
QOE report may cover a wide range of areas including; management, operational, marketing and financial matters. Financial due diligence (often referred to as “accounting” due diligence) is focused on providing potential investors with an understanding of a company’s:
- sustainable economic earnings,
- historical sales and operating expense trends,
- historical working capital needs, and
- key assumptions used in management’s forecast.