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Sellers order a Quality of Earnings report before soliciting buyers to uncover any problems that might disrupt the sale. In either case, the additional perspective enables you to remedy any pitfalls ahead of the sale. Significant and/or unusual accounting policies such as: Changes in accounting methods.
The answers—based on different sources of data like market research or historical sales information—guide internal decision-making to promote regular, sustainable growth as well as create contingency plans for worst-case or best-case scenarios. Communicate the results to stakeholders, who must then perform pro forma analysis and take action.
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