What is the difference between buy-side and sell-side Quality of Earnings?

Buy-side and sell-side Quality of Earnings analyses serve different objectives while examining similar financial elements. Buy-side QoE, typically commissioned by potential acquirers, focuses on identifying risks, validating seller representations, and uncovering potential issues that could affect valuation or deal structure. Harbor View Consulting's buy-side approach emphasizes conservative interpretations, stress-testing assumptions, and identifying potential working capital traps or hidden liabilities. Conversely, sell-side QoE helps sellers prepare for buyer diligence by proactively identifying and addressing potential concerns, supporting asking price with normalized earnings analysis, and presenting the business's sustainable earnings power. Our Maryland team helps Baltimore sellers position their companies favorably while maintaining credibility through transparent, defensible adjustments. Both approaches require independence and objectivity, but sell-side QoE allows time for remediation before entering the market, potentially improving valuation and accelerating transaction closure.