Quality of Earnings

The quality of the earnings of a business is not always simple to calculate

Going beyond net income or earnings before depreciation, interest, taxes and amortization, many businesses have non cash, non-recurring one time transactions and other adjustments included in their earnings. These one off type transaction need to be understood as to determine if they will carry forward with the business.

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Practice Lead

Scott McKenzie

Managing Director

Scott leads the firm’s transaction advisory services practice. He brings more than 20 years of experience in public accounting to his role at BNN. A seasoned audit professional, Scott works closely with private equity and venture-backed, emerging growth, and sophisticated public and privately held companies in the software, life sciences, construction, manufacturing and distribution industries.

Presenting a clear picture of the results of a business so decisions can be made

While most businesses are on a GAAP basis there can still be certain transactions that will or will not move forward with the business. We work with buyers and sellers to determine one time or non-recurring transactions, errors and non-cash transactions in order to present a clear picture of the results of the business.

How we can help

  • Discussions with management to assess potential add backs to EBITDA
  • Review and/or perform testing in significant areas to determine potential normalization adjustments
  • Perform testing as needed on normalization adjustments to EBITDA
  • Prepare a schedule of the normalization of EBITDA

What our clients are saying

We appreciate BNN’s responsiveness and availability to work on anything we put out to them. They always find an expert to get our questions answered.

We look forward to partnering with you.